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Madgavkar Exits Citi as Bank Relocates FXPB Business

Citi is relocating its FX prime brokerage business from the global FX franchise to sit within the prime services business.

As part of the changes, Profit & Loss understands that Citi veteran and global head of FXPB Sanjay Madgavkar will leave the firm and that Chris Perkins, head of the bank’s clearing business will take over.

Madgavkar has been with Citi for more than 20 years, starting in FX sales before moving into the e-FX business in 2001 – from 2005 he was North American head of FX and fixed income e-commerce. In 2007 Madgavkar was appointed head of FX margin trading at Citi, as part of which he headed the bank’s CitiFX Pro retail trading platform.

In 2012 Madgavkar was named as global head of FXPB following the departure of previous incumbent Andy Coyne.

Reports suggest that an Asian client of Citi’s FXPB unit has incurred losses that could reach $180 million. While a spokesperson for Citi declined to comment on the rumours of losses, sources say that they are related to loans to  Hong Kong-based GF Asset Management, a unit of China’s GF Holdings, but that $180 million is the maximum loss and the final outcome may be lower.

In a memo seen by Profit & Loss however the bank does confirm the  structural changes, saying, “In an effort to integrate all our prime financing businesses under a single umbrella, the foreign exchange prime brokerage business (FXPB), currently a part of FXLM, will now re-align to join prime finance and securities services (PFSS). Bringing our market leading FXPB team into PFSS will position us to unlock synergies across all Markets products and ensure our clients are supported seamlessly for their important financing, operational and transactional needs.

“As part of this re-alignment we have asked Chris Perkins to lead FXPB alongside his current role in running our OTC Clearing business,” the statement continues. “As foreign exchange markets continue to push towards capital and operational efficiency, combining both industry leading teams in clearing and prime services will allow a focus on ongoing changes in market structure and ensure that our clients are supported through this evolution. In his expanded role, Chris will continue to report to Jerome Kemp and FXPB will be part of the global FCC product organisation.”


Colin Lambert

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