London [UK], The Financial Conduct Authority (FCA) has fined brokerage Citigro Global Markets Ltd (CGML) approximately Euro (£) 61.6 million for failures in the firm's systems and controls in 2022. Up to US$1.4 billion of equities are being sold in European markets when this should not have happened. On May 2, 2022, a Citigroup trader intended to sell a basket of equities worth US$58 million. According to regulator FCA, traders made an input error when entering baskets into the order management system, resulting in the creation of a basket worth USD 444 billion. Citigroup controls blocked USD 255 billion of the basket in progress, But the remaining USD did not stop. 189 billion that was sent to a trading algorithm “A total of US$1.4 billion of equities were sold on European exchanges before the trader canceled the order.This coincided with a material short-term decline in some European indices that lasted a few minutes," the FCA statement said. "While some parts of Citigroup's trading control framework operated as expected, some primary controls were absent or inadequate." In particular, there was no hard block that would have completely rejected this large misplaced basket of equities and prevented any of it from accessing the market,'' the FCA said in the statement, adding that the firm's real-time monitoring was ineffective. Which meant it was slow to raise internal alerts about wrong trades, the FCA said, 'These failures led to more than a billion pounds of misplaced orders. Under execute and risk creating a disorganized market. We expect firms to look at their own controls and ensure they are appropriate given the speed and complexity of the financial markets,' said Steve Smart, joint executive director of enforcement and market oversight at the FCA. According to the FCA, Citigroup Did not dispute. Consensus on its conclusion and settlement, meaning it qualifies for a 30 percent discount. Without this exemption, the amount of financial penalty imposed by the FCA would be much higher.On 22 May 2024, the Prudential Regulation Authority (PRA) also imposed a fine. Following an investigation into related matters, a financial fine of 33,880,000 euros was imposed on Citigroup.