The Financial Industry Regulatory Authority sanctioned Citigroup Global Markets Inc. US $1.85 million for allegedly not complying with best execution requirements from January 1, 2008, through May 31, 2011, in connection with transactions for retail customers involving non-convertible preferred securities. According to FINRA, this violation arose because of flawed programing in a Citigroup proprietary order entry system that was used to facilitate transactions in the relevant securities, as well as a mistaken pricing methodology used by the relevant trading desk that did not consider the national best bid and offer in offering prices to customers. During the relevant time, claims FINRA, Citigroup received five inquiry letters related to best execution where, in response, it acknowledged problems with the pricing of the non-convertible preferred securities. According to FINRA, “[d]espite these red flags the firm failed to perform any meaningful supervisory reviews.” Citigroup agreed to its sanction without admitting or denying FINRA’s findings, and to provide more than US $638,000 (and interest) as restitution to relevant customers.