FCA Breaks New Ground with First-Ever Fine for MiFIR Transaction Reporting Failures

Key Takeaways

• MiFIR Enforcement Begins: The Financial Conduct Authority (FCA) has issued its first fine under the UK Markets in Financial Instruments Regulation (MiFIR), penalizing Infinox Capital Limited £99,200 for failing to report over 46,000 transactions.
• Transaction Reporting Failures: Infinox failed to report single-stock contracts for difference (CFDs) executed through its corporate brokerage account, which accounted for the majority of its business in that area between October 2022 and March 2023.
• Market Integrity at Risk: The FCA stressed that missing transaction reports put market abuse at risk of going undetected, as accurate and timely reporting is essential for upholding market integrity.
• Early Settlement Discount: Infinox settled early, securing a 30% fine reduction. Without the discount, the penalty would have been £141,800.

Deep Dive

Regulators have fired their first warning shot under MiFIR, and it’s landed squarely on Infinox Capital Limited. The Financial Conduct Authority (FCA) has fined the firm £99,200 for failing to report over 46,000 transactions, a lapse that could have left market abuse undetected.

This isn’t just another fine—it’s a first-of-its-kind enforcement under the UK Markets in Financial Instruments Regulation (MiFIR). For firms in the trading space, this is a wake-up call that the FCA is watching, and excuses won’t cut it.

Between October 2022 and March 2023, Infinox failed to submit transaction reports for single-stock contracts for difference (CFDs) executed through one of its corporate brokerage accounts. This wasn’t a minor oversight—the trades in question accounted for the majority of its business in that area.

CFDs, for the uninitiated, are high-risk derivative instruments that allow investors to speculate on stock prices without actually owning the shares. Given their speculative nature, they’re prime territory for market manipulation—which is precisely why MiFIR mandates firms to report such trades in a complete, accurate, and timely manner. But Infinox didn’t. Instead, the firm only recognized the issue after a third-party review uncovered the missing reports. Even then, it failed to proactively alert the FCA. Regulators had to independently identify the discrepancy in Infinox’s transaction data—a red flag signaling weak internal systems and controls.

That’s where things got serious.

No More Free Passes

The FCA has gone after firms for transaction reporting failures before. But this case is the first time a company has been fined specifically for breaching MiFIR’s transaction reporting rules since they came into effect.

Steve Smart, joint executive director of enforcement and market oversight, stated, "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."

It's clear that transaction reports are not just paperwork—they are a critical tool for identifying and preventing misconduct. Without them, regulators are flying blind.

A Discounted Lesson

Recognizing the inevitable, Infinox opted to settle early, securing a 30% reduction on its fine. Without the discount, the penalty would have been £141,800.

While the financial hit isn’t catastrophic, the reputational damage could be. Being the first firm fined under MiFIR’s transaction reporting rules isn’t exactly a badge of honor, and it puts Infinox firmly in the FCA’s crosshairs for future compliance scrutiny.

For financial institutions operating in the UK, this case sets a new precedent. The FCA has demonstrated that failure to report transactions under MiFIR isn’t just an administrative slip-up—it’s an enforcement priority.

Firms that rely on high-frequency, high-risk trading instruments like CFDs should take this as a signal to tighten their reporting systems and controls—before the FCA does it for them.

The era of regulatory leniency on reporting failures is over. If Infinox is the first to be fined under MiFIR, it almost certainly won’t be the last.

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