UK regulators have fined Citigroup £62 million for failing to prevent a fat-fingered $1.4 billion trading error that briefly convulsed European stock markets.
“Firms involved in trading must have effective controls in place in order to manage the risks involved. CGML failed to meet the standards we expect in this area, resulting in today’s fine,” said Sam Woods, chief executive of the PRA.Singapore flight turbulence: Kilkenny man ‘went through the panel above his head’‘Dodgy box’ operator let out on bail to shut down illegal TV service used by thousands
Citi’s internal controls blocked $255 billion of the erroneous trade, but orders worth $189 billion were sent a trading algorithm to execute. About $1.4 billion of the shares were sold before the trader managed to cancel the order.