Citigroup Global Markets has agreed to pay £12.6 million ($14.9 million) after it failed to properly implement market abuse regulation requirements.
The U.K’s Financial Conduct Authority (FCA) announced Friday that it fined Citigroup’s
international broker-dealer over not effectively monitoring its trading activities for certain types of insider dealing and market manipulation.
By agreeing to resolve the case, the Citi unit was handed a 30% discount on the fine. Barring that, it would have faced a fine of almost £18 million.
Market Abuse Regulation (MAR) is a piece of legislation brought out in 2016 by the European Union and expanded requirements to detect and report potential market abuse. It covers the offences of insider dealing, unlawful disclosure of inside information and market manipulation.
The FCA said Citigroup Global Markets breached its duties to conduct business with due skill, care and diligence.
The U.K regulatory body said Citigroup didn’t enforce the new requirements when it took effect, and spent 18 months identifying the market abuse risks the business may have been exposed to.
“The framework for market integrity depends on the partnership between the FCA and market participants using data to detect suspicious trading,” said Mark Steward, the FCA’s executive director of enforcement and market oversight, in a statement.
“By not fully implementing the new provisions when required, Citigroup Global Markets did not carry its full weight in this partnership, impacting market integrity and the overall detection of market abuse,” he added.