The Financial Conduct Authority (FCA) has imposed a fine of £99,200 on Infinox Capital Limited (Infinox) for failing to submit thousands of transaction reports over a six-month period.
The CFD broker failed to report the breach to the UK regulator and was fined under MiFIR rules
The Financial Conduct Authority (FCA) has imposed a fine of £99,200 on Infinox Capital Limited (Infinox) for failing to submit thousands of transaction reports over a six-month period, which increased the risk of market abuse going undetected.
Infinox Capital was found to have failed to submit 46,053 transaction reports for single-stock contracts for difference (CFD) trades executed through one of its corporate brokerage accounts between 1 October 2022 and 31 March 2023.
The decision by the UK’s main regulator represents the first enforcement action taken against a breach of transaction reporting requirements since it became law under the UK Markets in Financial Instruments Regulation (MiFIR).
Commenting on the sanction, Steve Smart, joint executive director of enforcement and market oversight, said: “As a data-led regulator it is vital that firms submit accurate and timely transaction reports, and promptly bring any failures to our attention. Infinox failed to do this, which meant market abuse could have flown under the radar and risked the integrity of the market. Our specialist teams constantly monitor market data in real time to track any signs of misconduct.”
While the FCA noted that the broker identified the reporting discrepancies following a third-party review, Infinox not proactively report the breach, meaning it was the regulator that discovered the issue within the submitted transaction data
By agreeing to resolve the case at an early stage, Infinox received a 30% discount on the penalty imposed, reducing the total fine to £99,200 from an initial £141,800.
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