City Index Fined $783,000 for Not Providing Accurate Reports

City Index Ltd., a spread-betting brokerage firm, was fined 490,000 pounds ($783,000) for not submitting accurate transaction reports to the U.K. finance regulator over a two-year period.

City Index failed to give the Financial Services Authority reports on about 2 million transactions, or close to 60 percent of its reportable trades, the regulator said in a statement today. The FSA uses the reports to detect market abuse, it said.

The brokerage also failed to have accurate systems in place to ensure the reports were accurate, the regulator said. The firm qualified for the FSA’s standard 30 percent discount for cooperating in the probe and commissioned a review of its reporting processes.

“City Index failed to report accurately a high proportion of its transactions for almost two years,” Margaret Cole, the FSA enforcement chief, said in the statement. “This failure is a serious breach of our rules because it can have a damaging impact on our ability to detect and investigate suspected market abuse.”

City Index spokesman Joshua Raymond didn’t immediately return a call for comment.

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