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Coding error costs Citigroup $7 million

Gabriela Motroc

Pile of documents on desk image via Shutterstock

Citigroup must pay $7 million after the U.S. Securities and Exchange Commission revealed that the financial services firm provided incomplete “blue sheet” information about trades it executed for 15 years. During this period, Citigroup omitted 26,810 securities transactions from its responses to more than 2,300 blue sheet requests.

The U.S. Securities and Exchange Commission announced in a press release that Citigroup Global Markets agreed to pay a $7 million penalty and admit wrongdoing after it was revealed that it offered the agency incomplete “blue sheet” information about trades it executed from May 1999 to April 2014. The error was discovered by Citigroup itself, but the financial services firm did not report the incident to the agency and failed to produce the omitted 26,810 securities transactions until nine months later.

According to Robert A. Cohen, Co-Chief of the SEC Enforcement Division’s Market Abuse Unit, Citigroup did not offer the agency “accurate and complete trading data” for the SEC to analyze during enforcement investigations. As a result, “it must pay the largest penalty to date for blue sheet violations.”

Other companies that failed to provide complete blue sheet data are Credit Suisse Securities (USA) LLC, OZ Management LP and Scottrade.

Gabriela Motroc
Gabriela Motroc was editor of and JAX Magazine. Before working at Software & Support Media Group, she studied International Communication Management at the Hague University of Applied Sciences.

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