Citibank broker-dealer fined £12.5m for bungled MAR roll-out

It took Citigroup Global Markets 18 months after the implementation date to identify "significant gaps" in its compliance with the Market Abuse Regulation. The regulator was unimpressed that a "key market participant" mishandled a "significant and well-publicised piece of legislation for which the Authority issued clear advice". Denis O'Connor examines the final notice.

Denis O'Connoris a fellow of both the Institute of Chartered Accountants in England & Wales and the Chartered Institute of Securities and Investment. He was a member of the British Bankers' Association Money Laundering Committee from 2003-10 and a member of the Joint Money Laundering Steering Group's board and editorial panel between 2010 and 2016. He has been a frequent speaker at industry conferences on financial crime issues, both in the United Kingdom and abroad.

The Financial Conduct Authority has fined Citibank Global Markets Ltd (Citi) £12.55 million for failing to implement the Market Abuse Regulation (MAR) trade surveillance requirements properly relating to the detection of market abuse. [1] Hence, Citi could not effectively monitor its trading activities for certain types of insider dealing and market manipulation.