Citigroup fine could outlaw large trades

In a commentary produced for IFAonline, Christopher Warren-Smith, litigation partner at Barlow, Lyde & Gilbert says the record fine issued placed on Citigroup last month “poses profound questions” about the prospect of regulatory action when large trades move the market, regardless of deliberate intent. More specifically, Warren-Smith suggests any action which is designed to move a price could now be considered by the FSA to be “unacceptable” even where a firm is thought to have done nothing wrong, but has acted in a way the market doesn’t like. “At its worst, this could suggest that ...