Author: | Published: 1 Jul 2005

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 August.

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...