Morgan Stanley Smith Barney, the brokerage venture of Morgan Stanley and Citigroup Inc., was fined $450,000 after a trader amassed a $1.3 billion bet in 2009, Financial Industry Regulatory Authority records show.

The brokerage didn't have enough controls in place to detect that Jared Weinryt, 31, had breached his $116 million trading limit as he made overnight bets on so-called futures, Finra said this month. The trades led to losses for Morgan Stanley Smith Barney of about $14.9 million, according to Finra.

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