Citadel Investment Group has been ordered to pay three stock exchanges $750,000 for sending erroneous orders over a nearly three-year period.
The Financial Industry Regulatory Authority leveled an $800,000 fine against the hedge fund in June, Reuters reports. The self-regulatory agency said that Citadel’s supervisory system over orders was lacking, leading to some mispriced or duplicated orders being sent to the Nasdaq Stock Market, New York Stock Exchange and BATS Exchange.
The erroneous orders were sent between March 2010 and January 2013.
More than half of the fine will go to Nasdaq, with $170,000 paid to BATS and $160,000 to NYSE. FINRA will keep $50,000.
“We take our responsibilities as a market-maker very seriously, and continually work to improve our systems and controls,” Citadel said. “We are committed to taking prompt action when areas of concern are identified.”