01 · In plain English
What happened.
The FCA fined Citigroup Global Markets Limited (FRN 124384) £27,766,200 in a final notice dated 17 May 2024 for breaches of Principles 2 (skill, care and diligence) and 3 (management and control) and for breaching MAR Rule 7A.3.2 relating to algorithmic trading. On the same date the Prudential Regulation Authority issued a Final Notice to CGML, imposing a £33,880,000 penalty for breaches of Fundamental Rules 2, 5 and 6 and PRA algorithmic trading rules; CGML settled during the PRA’s Discount Stage and received a 30% settlement discount (the undiscounted PRA penalty would have been £48,400,000). The FCA and PRA actions took effect on 17 May 2024.
Summary generated from the FCA notice and press reports. Check the final notice below before relying on it.
02 · Enforcement details
What the FCA register says.
The FCA has issued a final notice on 17/05/2024 by which it imposed a financial penalty of £27,766,200 against CGML (the firm) following breaches of Principles 2 (skill, care and diligence) and 3 (management and control) of the Authority’s Principles for Businesses, and for breaches of Rule 7A.3.2 of the Market Conduct part of the Authority’s handbook known as MAR relating to Algorithmic Trading. On 17 May 2024, the PRA issued a Final Notice to Citigroup Global Markets Limited (CGML). The PRA imposed a financial penalty of £33,880,000 for breaches of Fundamental Rules two (a firm must conduct its business with due skill, care and diligence), five (a firm must have effective risk strategies and risk management systems) and six (a firm must organise and control its affairs responsibly and effectively), as well as breaches of the PRA Rulebook Algorithmic Trading Rules 2.1(2-3) and 2.2(2). CGML agreed to settle during the Discount Stage of the PRA’s investigation. As a result, CGML qualified for a 30% settlement discount under the PRA Settlement Policy. Were it not for this discount, the PRA would have imposed a financial penalty of £48,400,000. The PRA’s action took effect on 17 May 2024. A copy of the Final Notice can be found on the Bank of England’s website and can be accessed here . https://www.fca.org.uk/publication/final-notic es/citigroup-global-markets-limited-2024.pdf
03 · Firm details
Firm on the FCA register.
- Firm name
- Citigroup Global Markets Limited
- Firm reference number
- 124384
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