Infinox Faces Initial Transaction Reporting Penalty Under MiFIR Regulations
Read Time:1 Minute, 10 Second

Infinox Faces Initial Transaction Reporting Penalty Under MiFIR Regulations

The FCA has imposed its first fine for transaction reporting failures related to MiFIR regulations. Infinox Capital has been fined £99,200 for not submitting 46,053 transaction reports, which could have allowed market abuse to go unnoticed.

Between 1 October 2022 and 31 March 2023, Infinox failed to provide transaction reports for single-stock contracts for difference (CFD) trades executed through one of its corporate brokerage accounts, which contributed significantly to this business line. Although Infinox recognized the reporting failure after a review by a third party, it did not promptly inform the FCA about the breach.

The regulator identified the discrepancies in transaction data submitted by Infinox on its own, pointing out weaknesses in the firm’s transaction reporting systems and controls concerning high-risk investment products. While the FCA has previously fined several firms for transaction reporting failures, this marks the first enforcement action against a firm for breaches occurring under the UK Markets in Financial Instruments Regulation (MiFIR).

Steve Smart, joint executive director of enforcement and market oversight, stated, “As a data-led regulator, it is crucial that firms submit accurate and timely transaction reports and quickly inform us of any failures. Infinox did not fulfill these responsibilities, potentially allowing market abuse to go undetected and jeopardizing market integrity.”

He emphasized that the FCA’s specialized teams continuously monitor market data in real-time to identify any signs of misconduct.