Citigroup mistakenly acknowledged one of its traders on Monday hours after several European stocks were hit by a brief and sudden drop.
Nordic stocks were hit particularly hard, with Sweden’s OMX 30 index fall Up 7.9 percent before recovery to a 1.9 percent lower. Overall, the regional Stoxx 600 index fell 3% before cutting its losses to a 1.5% drop.
Market participants attributed the sharp falls to the American banking group that traded in a stock basket that included many Swedish names. Citi later confirmed that one of its dealers “made a mistake while entering a deal”, without providing further details.
“Within minutes we identified the error and corrected it,” the bank said in a statement.
For Citi, the trade glitch will bring back memories of its mistake in 2020 when it made a mistake Transferred $ 900 million To the creditors of the Revlon cosmetics company.
The bank only succeeded Return part Of the funds. It was also later A fine of $ 400 million By U.S. regulators for failing to correct deficiencies in its risk and control systems, and ordering to upgrade its processes and technology.
Jane FraserCiti’s CEO since February 2021, stressed that risks and controls remained a priority for the bank, treating them as “non-negotiable” at an investors’ event in March.
The so-called flash crashes, which refer to short-term price collapses, have become more severe with the proliferation of high-frequency trading companies. The term was Minted in May 2010 As U.S. stock indices plummeted.
Citi acknowledges trading error after flash fall in some European shares Source link Citi acknowledges trading error after flash fall in some European shares