Merrill Lynch & Co has reported an “irregularity” in its trading operations just hours after a news report said British investigators were probing losses incurred by a currency trader in the firm's London operations.

The firm, purchased by Bank of America at the start of this year, has informed regulators of a discrepancy in “certain trading positions,” Merrill said in a statement from London today, according to Bloomberg.

Merrill said that it is working with authorities to investigate the matter.

Earlier today, the New York Times reported that a currency trader in Merrill’s London operations, Alexis Stenfors, was being investigated by British regulators. The report states he lost a substantial amount on his earnings.

Stenfors recorded a trading profit of $120 million in 2008, the Times said, citing people familiar with the matter.

Stenfors on Thursday called the matter a misunderstanding but would not elaborate.

The discovery was made a few weeks ago when Bank of America sent executives to investigate, the report stated.