Citigroup Global Markets Inc. is paying a $10,000 penalty to Montreal Exchange Inc. over allegations that it provided an employee with unauthorized access to the exchange’s electronic trading system.
The MX announced Monday that, following a hearing on May 18, its disciplinary committee approved a settlement between the firm and staff of its regulatory division, resulting in monetary penalties against the firm, including a fine of $7,500, and $2,500 in costs.
The settlement concerns a complaint filed against the firm on November 14, 2011, following an investigation conducted by the exchange’s regulatory division, alleging that between October 1, 2010 and March 30, 2011, Citigroup violated the exchange’s rules by providing access to the bourse’s electronic trading system to one of its employees, without the prior approval of the bourse.
According to the decision, in that time, the unnamed employee submitted a total of 19 orders, executing over 2,000 futures contracts. However, it notes that the violation didn’t result in any harm to clients, or other firms, nor did it generate any gain for the firm.