City Of London
Citi Fined €13 Million by Germany Over Fat-Finger Flash Crash
- Bank failed to have appropriate systems in place, BaFin says
- The flub sparked a selloff in OMX Stockholm 30 Index in 2022
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A unit of Citigroup Inc. was fined almost €13 million ($14 million) by Germany’s financial regulator over control failures in the banking giant’s algorithmic-trading business that caused a flash crash in European stocks in 2022.
In May of that year, Citigroup Global Markets Europe AG didn’t have appropriate systems to ensure relevant thresholds and caps were respected, BaFin said in a statement Thursday. The system failed to detect a manual input error made by one of the company’s traders, which caused a market disruption, the watchdog said.