UK watchdog fines Sigma Broking $600,000 for reporting failures

Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville/File Photo

LONDON, Oct 6 (Reuters) - Britain's financial watchdog fined Sigma Broking Ltd 531,000 pounds ($597,000) and banned former directors for reporting failures, including related to suspicious deals, it said on Thursday.

Privately-held Sigma did not report or failed to report accurately 56,000 contracts for difference (CFD) deals and failed to identify 97 suspicious transactions or orders, the Financial Conduct Authority (FCA) said in a statement.

The violations took place between December 2014 and August 2016, the FCA added.

"Firms must accurately report their transactions and bring any suspicious activity to our attention. Sigma failed to do this, which left potential market abuse undetected," said Mark Steward, FCA executive director of enforcement and market oversight.

Sigma declined to comment on the FCA action, which also involved fining and banning former chief executive Simon Tyson and former director Stephen Tomlin from holding significant management functions in FCA-regulated firms. Current director Matthew Kent was fined.

Sigma sold its CFD business in 2018 to British betting company GVC Group, which has been renamed Entain plc (ENT.L).

That business was part of GVC's Intertrader unit, which Entain sold in 2021 to Raven Ventures International.

Sigma offers a range of services in equities, foreign exchange, fixed income and commodities and is one of eight members of the London Metal Exchange that is allow to trade in the open outcry ring.

In January, Sigma became the first new LME ring trading member in 15 years.

($1 = 0.8892 pounds)

Reporting by Eric Onstad Editing by Mark Potter

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