UK regulators have fined Citigroup £61.6 million for failures in its trading systems and controls between 2018 and 2022. The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) identified deficiencies in Citigroup's preventative measures and control calibration.
A notable incident in May 2022 saw a Citi trader mistakenly create a $444 billion basket of equities for sale, instead of the intended $58 million. This error triggered a flash crash in European stocks, with $1.4 billion worth of equities sold before the order was cancelled.
Citigroup, which agreed to settle the case, acknowledged the incident and stated that they immediately took steps to strengthen their systems and controls. The bank emphasised its commitment to full regulatory compliance.
