The Financial Industry Regulatory Authority announced Tuesdayy that it has imposed a US$2 million fine against Citigroup Global Markets for various trade reporting violations.

The sanction relates to the erroneous publication of non-bona fide quotations and transactions at and around the NASDAQ market opening on a Quadruple Witch Expiration Friday; systemic Order Audit Trail System reporting violations; fixed income transaction reporting violations; limit order display violations; and, related supervisory failures. These violations occurred in 2006 and prior years.

In concluding the settlement, Citigroup neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

“Firms must establish and maintain operational controls and supervisory systems reasonably and effectively designed to ensure that their trading systems function correctly, especially on expiration days when price discovery is particularly important,” said Tom Gira, executive vice president of FINRA’s market regulation department.

IE