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Citi tech tweaks halt UK online ETF purchases

Citigroup halted the online purchase of traded funds on the UK Stock Exchange pending system improvements, the latest in a string of technology problems affecting US bank business.

Over the weekend, clients holding wealth management accounts announced that they could no longer make purchases of low-cost funds online for “operational reasons,” according to a customer announcement seen by the Financial Times.

Instead, customers will need to place orders over the phone with a relationship manager. The suspension is due to the improvement of the system and mainly affects customers in the UK, according to a person who was briefed on the suspension.

City Declined to comment.

The stop further emphasizes the technological renovation that is taking place in the city following a series of malfunctions in its business, from wealth management to payments and trade.

A Citi trader made wrongful transactions in European stocks last month, a move that was later accused of causing a mini-flash crash. In the summer of 2020, a mistake called a fat finger resulted in a $ 900 million loan being repaid to City Revlon’s lenders, instead of the intended interest payment of less than $ 8 million.

The Financial Times Reporting This month, that City also suffered a technological glitch at the height of the market panic at the start of the Corona epidemic, which left it relying on the mercy of a stock exchange clearinghouse to prevent it from meeting the margin payments for derivative contracts.

To fix the problems CEO Jane Fraser spent $ 11 billion on technology spending in 2022, one of the banking industry’s biggest budgets.

ETFs Offering exposure to U.S. stock markets are among the most popular acquisitions for retail investors, drawn to their low costs. They mostly track major indices like the S&P 500 and Nasdaq 100, and the industry is approaching $ 10 billion in assets under management.

Citi tech tweaks halt UK online ETF purchases Source link Citi tech tweaks halt UK online ETF purchases

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