As IFLR went to press, the UK's Financial Services Authority
(FSA) announced a £13.9 million ($25.3 million)
settlement with investment bank Citigroup over its trading
activity on the Eurozone government bond trading platform last
The payment relates to Citigroup's sale on August 2 2004 of
€12.9 billion ($15.6 billion) of bonds in one minute. The
bank then bought back €3.8 billion of bonds less than an
hour later for a lower price, created when Citigroup flooded
the market with paper. Although the trades were not illegal,
they adversely affected market functioning and liquidity.
The FSA decision cites Citigroup for...