SEC Fines Citigroup $15 Million For Not Protecting Client Order Information

The Securities and Exchange Commission said Wednesday that Citigroup Global Markets , the bank's broker-dealer subsidiary, will pay a $15 million penalty to settle charges that it failed to protect material, nonpublic information. Broker-dealer employees routinely have access to material nonpublic information, but Citigroup Global Markets did not review thousands of trades executed by several of its trading desks for compliance with confidential information handling rules during between 2002 and 2012, the SEC said. Citigroup did not admit or deny the findings but agreed to retain a consultant to review and recommend improvements to its trade surveillance and advisory account order handling and routing.