The Financial Conduct Authority (FCA) has imposed its first fine for transaction reporting failures under the UK Markets in Financial Instruments Regulation (MiFIR) on Infinox Capital Limited (Infinox).
FCA Fines a CFDs Broker
Announced today (Wednesday), the contracts for differences (CFDs) broker has been fined £99,200 for failing to submit 46,053 transaction reports, increasing the risk of market abuse going undetected.
The reporting failure occurred between 1 October 2022 and 31 March 2023 for single-stock CFDs traded through one of the broker’s corporate brokerage accounts.
“As a data-led regulator, it is vital that firms submit accurate and timely transaction reports and promptly bring any failures to our attention,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA. “Infinox failed to do this, which meant market abuse could have flown under the radar and risked the integrity of the market.”
Lapses in the Reporting System
According to the British regulator, the broker identified these transactions following a third-party review but failed to report the breach. Instead, the FCA itself detected the discrepancies in the broker’s submitted transaction data.
The regulator also highlighted that the breach exposed weaknesses in the broker’s reporting systems and controls for a high-risk investment product.
“Our specialist teams constantly monitor market data in real-time to track any signs of misconduct,” Smart added.
The UK MiFIR is a regulatory framework governing the trading of financial instruments in the UK. Originally introduced as part of the EU MiFIR, it was designed alongside MiFID II (Markets in Financial Instruments Directive II) to enhance market transparency and stability.
The FCA noted that while it has previously fined firms for transaction reporting failures, this is the first enforcement action under the UK MiFIR.
Finance Magnates earlier reported that Infinox Capital’s revenue fell by nearly 75% to £3.69 million for the fiscal year ending 31 March 2024. However, the company remained profitable with a net gain.
The Financial Conduct Authority (FCA) has imposed its first fine for transaction reporting failures under the UK Markets in Financial Instruments Regulation (MiFIR) on Infinox Capital Limited (Infinox).
FCA Fines a CFDs Broker
Announced today (Wednesday), the contracts for differences (CFDs) broker has been fined £99,200 for failing to submit 46,053 transaction reports, increasing the risk of market abuse going undetected.
The reporting failure occurred between 1 October 2022 and 31 March 2023 for single-stock CFDs traded through one of the broker’s corporate brokerage accounts.
“As a data-led regulator, it is vital that firms submit accurate and timely transaction reports and promptly bring any failures to our attention,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA. “Infinox failed to do this, which meant market abuse could have flown under the radar and risked the integrity of the market.”
Lapses in the Reporting System
According to the British regulator, the broker identified these transactions following a third-party review but failed to report the breach. Instead, the FCA itself detected the discrepancies in the broker’s submitted transaction data.
The regulator also highlighted that the breach exposed weaknesses in the broker’s reporting systems and controls for a high-risk investment product.
“Our specialist teams constantly monitor market data in real-time to track any signs of misconduct,” Smart added.
The UK MiFIR is a regulatory framework governing the trading of financial instruments in the UK. Originally introduced as part of the EU MiFIR, it was designed alongside MiFID II (Markets in Financial Instruments Directive II) to enhance market transparency and stability.
The FCA noted that while it has previously fined firms for transaction reporting failures, this is the first enforcement action under the UK MiFIR.
Finance Magnates earlier reported that Infinox Capital’s revenue fell by nearly 75% to £3.69 million for the fiscal year ending 31 March 2024. However, the company remained profitable with a net gain.
This post is originally published on FINANCEMAGNATES.
