Citi is creating a single rates and currencies business line by integrating FXLM and G10 rates.
An internal memo seen by Profit & Loss explains that the two existing businesses have a neighbouring product set, share corporate sales, structuring and a significant technology stack. Therefore, it says that combining them will create “a more streamlined operating model that will drive better client service, risk management and profitability”.
“We want to thank Nadir Mahmud for managing our leading FXLM franchise over the last five years. He will continue to report to us; assisting in this transition and then working with Leo Arduini on EMEA strategy, including optimising the legal entity and booking model structure,” say Carey Lathrop and Andy Morton, co-heads of Citi’s markets and securities business, in the memo.
Itay Tuchman will continue in his role as global head of FX trading and local markets, while Deirdre Dunn, who was head of North American markets, and Pedro Goldbaum, who was co-head G10 non-linear rates trading at Citi, will co-run rates. All three will report into Lathrop and Morton. The memo says that Citi will begin the process to select Dunn’s replacement.
The current G10 rates and local rates trading desk heads will now report to Dunn and Goldbaum, in addition to their existing regional reporting lines.
Flavio Figueiredo will head rates and currencies corporate sales, reporting to Lathrop and Morton, as well as to Andres Recoder, head of EMEA markets sales.
Regional corporate sales and structuring heads Eduardo Miszputen and Carlos Xirau, focused on APAC and LatAm FXLM, respectively, and John Chun and Mark Mathieson, who focus on North American and EMEA G10 rates CSG, respectively, will each take on a reporting line to Figueiredo.
Local markets and G10 markets treasury will combine into a single unit, led by Andy Thursfield, with Ulises Garciga, regional head of local markets for Latin America, reporting to him. Thursfield will report to Lathrop, Morton and Citi’s treasurer Michael Verdeschi.
There will also be a number of changes to the reporting lines for the product investor sales team.
Brian Mccappin, head of FXLM investor sales, will report to Tuchman, Dunn, Goldbaum and Jim O’Donnell, managing director and global head of investor sales and relationship management at Citi.
Serge Pomonti, Mike Saraceni and Ben Travers – the heads of G10 rates investor sales for APAC & Japan, North America and EMEA, respectively – will report to Dunn, Goldbaum and the corresponding regional sales heads.
Lionel Durix will continue to head rates and currencies structuring, reporting to Tuchman, Dunn and Goldbaum.
Jose Luis Yepez will head APAC rates and currencies trading reporting to Tuchman, Dunn, Goldbaum and locally to Stuart Staley, head of Asian markets and securities services.
Under the new structure, the current G10 rates finance desk will be outside the scope of rates and currencies, with the memo stating that there will be a separate communication describing the new construct of that business in the next couple of weeks.
“We wish all our colleagues here the best of success in their new roles, as we work together to extend Citi’s lead over the competition in the rates and currencies domain,” conclude Lathrop and Morton in the memo.