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FCA Fines BGC/GFI £4,775,200 for Failures to Detect Market Abuse

2022-12-09 Brokersview

FCA imposed fines on BGC Brokers LP, GFI Brokers Limited, and GFI Securities Limited (together BGC/GFI). 

According to the Market Abuse Regulation (MAR) trade surveillance requirements, the BGC/GFI should take appropriate measures to avoid the risk posed by potentially suspicious transactions in order to effectively detect market abuse. This is of fundamental importance to the integrity of the market, as a broker such as this has an effective market abuse monitoring system in place.

However, from July 2016 to January 2018, BGC/GFI's monitoring system had multiple deficiencies, which led to elevated market risks.

According to Mark Steward, Executive Director of Enforcement and Market Oversight, this case demonstrates the FCA's determination to require regulated firms to prioritize market integrity and maintain high standards of compliance.

Since the BGC/GFI agreed to settle the case early, the FCA reduced the penalty by 30%. 

Since then, BGC/GFI has upgraded the system and strengthened the controls.

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