The European Central Bank’s FX Contact Group (FXCG) appears to have dropped Citi from its newly published members list in which the bank’s absence is the only change recorded.
An August 2014 copy of the member’s list viewed by Profit & Loss lists 19 representatives of the FX industry, while the November version now lists just 18.
According to the FXCG, the composition of the group is “reviewed on an annual basis” and the leading FX banks are understood to take their place on the group in rotation.
However group secretary, Guy-Charles Marhic, adds that for the FXCG there is “no fixed term” for how long a member will serve on the group.
Instead, industry sources argue the sole exclusion of Citi appears to be more related to its involvement in the recent settlement with global regulators over FX failings. Among the findings, Citi employees were found to have been manipulating the ECB’s 1.15pm Fix.
Citi was the only one of the six banks to have been fined so far by US and UK regulators to be sitting on the FXCG, although Barclays, still currently a member of the group, is also in discussions to agree upon a combined settlement.
The FXCG is composed of individual members representing prominent institutions, including 12 FX trading banks.
Citi declined to comment.