Citigroup fined $1.1 mln for illegal short selling

Citigroup fined $1.1 mln for illegal short selling

NEW YORK (MarketWatch) — Citigroup Inc.’sC -0.15% U.S. based brokerage and securities arm Citigroup Global Markets Inc. has been ordered to pay $1.1 million by the Financial Industry Regulatory Authority and the BATS Exchange for alleged short selling securities ahead of participating in five public offerings. Citigroup allegedly violated supervisory requirements related to Rule 105 of Regulation M and that the firm sold securities short within the five business days leading up to the pricing of five public offerings in those securities, and then purchased securities in those offerings. The charges were related to transactions between 2009 and 2010. The payments include a disgorgement of more than $538,000, plus interest, of profits and improper financial benefits, and approximately $559,000 in fines, according to a statement from FINRA. As part of the settlement, Citigroup neither admitted nor denied the charges.