Citigroup Global Markets Limited

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.

On 19 August 2022 the FCA fined Citigroup Global Markets Limited £12,553,800 for failures in its market‑abuse surveillance. The FCA found CGML breached Principle 2 (which requires firms to conduct business with due skill, care and diligence) between 2 November 2015 and 18 January 2018, and breached Article 16(2) of the Market Abuse Regulation (which requires firms to establish and maintain effective arrangements, systems and procedures to detect and report suspicious orders and transactions) between 3 July 2016 and 18 January 2018. The FCA set out its findings and the penalty in a Final Notice published on its website.

Between 19 June 2014 and 31 December 2018 Citigroup’s UK entities failed to organise and control their affairs responsibly and effectively, submitted incomplete or inaccurate notifications to the regulator, and (for the branches) failed to provide required branch information to the PRA. The Prudential Regulation Authority (part of the Bank of England) fined Citigroup Global Markets Limited, Citibank N.A. London Branch and Citibank Europe Plc UK branch £43,890,000 under section 206 of the Financial Services and Markets Act 2000. The PRA’s final notice is published on the Bank of England website.

The FSA found that on 2 August 2004 Citigroup Global Markets Limited (CGML) ran a large, technology‑enabled trading strategy in European government bonds—building very substantial long positions and then exiting them quickly via many simultaneous trades on the MTS platform—which caused short‑term disruption to MTS volumes and sharp price falls. The FSA concluded CGML breached Principle 2 (to conduct business with due skill, care and diligence) and Principle 3 (to organise and control its affairs and have adequate risk management) because the trade was not escalated to senior management, control functions were not consulted, clear size parameters were not set or reviewed, and trader supervision was inadequate. The FSA imposed a penalty made up of a relinquishment of profits of £9,960,860 and an additional penalty of £4,000,000; the decision was recorded on 28 June 2005.