Articles tagged by Citi
Citi is on the wrong end of a third unfair
dismissal trail according to sources familiar with the matter who say that Rob
Hoodless has won his claim against the bank.
In an email statement, Hoodless says, “The East London ...
After a number of years having to take reactionary measures in
response to new regulatory requirements, panellists at Profit & Loss’ Forex Network New York conference expressed
enthusiasm for a new wave of innovation that has the potential to re-shape FX
Citi’s former global head of FX trading,
Jeff Feig, is reportedly seeking to establish a macro hedge fund and is talking
According to a report by Bloomberg, Feig has teamed up with Chris Fahy, with whom he ...
The second quarter of 2016 saw mixed performances amongst some of the major banks, against a background of increasing uncertainty and challenging trading conditions in currency markets.
Goldman Sachs posted a 20% year-on-year increase in net revenues in what it calls Fixed ...
Citi has launched its fourth annual ‘E for Education’ charity campaign, an initiative the says has raised over $12 million for education focused charities. Under the sceheme, Citi’s FX business will donate $1 for every $1 million of FX transacted electronically between 12 September to 18 November 2016.
All proceeds from the 10 week campaign will go to seven charities, the bank says during the campaign there will also be a series of activities involving local schools including classroom teach-ins by staff, student CV clinics and trading floor visits.
Clearing house LCH says its ForexClear service has seen 10 entities turn to actively clearing FX non-deliverable forwards in the past six months and that it has experienced a “significant” rise in cleared notional and trade count in 2016, with over $220 billion in notional cleared to date in September 2016.
As of 23 September, the firm says over $1 trillion in notional has been cleared in 2016.
“The uncleared margin rules that are coming into force across the world have been a catalyst for driving eligible and appropriate derivatives trades towards central clearing,” says Daniel Maguire, LCH’s global head of rates and FX derivatives.
Tradebook FX (TBFX), Bloomberg’s FX ECN, has reached an agreement with Citi for the bank to serve as a central clearing counterparty (CCP) on the platform.
“We feel that the combination of Citi’s expertise in FX, and FXPB in particular, and market leading role in foreign exchange globally, coupled with the wide network of Bloomberg clients will be very synergistic,” says Tom Murphy, head of FX, futures and equity options sales at Bloomberg Tradebook. Citi will be the second CCP on TBFX
Citi, Numerix, Currenex...
A report in the Financial Times claims a Citi trader in Tokyo exacerbated the sterling flash crash on October 7.
The FT report, citing bankers and officials involved in the inquiry, says the investigation into events on that day are focusing “heavily” on the actions of the Tokyo-based Citi trader who allegedly placed multiple sell orders via the bank’s aggregator and “panicked”.
Sources familiar with the matter tell Profit & Loss that while Citi’s name was prominent in the market on that day it was by no means alone.
Citi’s fourth annual ‘E for Education’ charity campaign has raised $4 million for education-focused charities.
The 10-week global charity campaign stretched across Citi’s offices in the United States, Europe, Middle East, Africa, Asia and Latin America. All proceeds will be evenly divided amongst seven charities.
As was the case in previous years, Citi’s FX business donated $1 for every $1 million of FX transacted electronically.
The campaign featured a series of activities involving local schools including classroom teach-ins by staff, student CV clinics and trading floor visits.
A US District Court judge has ratified fines against five major banks following their guilty pleas last year over currency market manipulation charges.
US District Judge Stefan Underhill in Bridgeport Connecticut agreed fines for Citi of $925 billion, Barclays $650 million, JP Morgan $550 million, Royal Bank of Scotland $395 million and UBS $203 million after the banks pleaded guilty to FX market abuse in mid-2015. The fines were recommended by the US government and accepted by Judge Underhill last week.
Profit & Loss understands that Daniel Aitchison is leaving his role as head of FX and local markets for Citi in Japan.
Aitchison is a 35-year veteran of Citi, having started with the bank’s FX business in Canada in 1982. He moved to the London trading room in 1995 before being transferred to Singapore in 2012 to become the bank’s Asia head of FX and local markets.
In 2015 Aitchison switched to Citi in Tokyo and assumed his current position.
Citi has become the first bank to settle with South Africa’s Competition Commission, paying the equivalent of a just over $5 million fine related to charges it participated in a cartel that manipulated prices in the rand.
The Commission found that from at least 2007, Citi and its competitors had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving USD/ZAR. The Commission last week charged 14 banks with collusion.
Baris Ozkaptan has become the fourth former Citi FX trader to win a claim of unfair dismissal against the bank.
Although a London employment tribunal judge Alison Russell found in Ozkaptan’s favour overall, informed sources say she did note in the judgement that Ozkaptan contributed to the dismissal, meaning the final compensation paid could be reduced.
Currently the maximum amount that can be awarded is GBP 78,800, a remedial hearing will be held at a later date to finalise any compensation paid to Ozkaptan.
Following the retirement of head of G10 FX James Bindler, Citi is reorganising its business structure by merging its G10 and emerging markets FX activities into a single global foreign exchange trading business.
As previously reported by Profit & Loss, Itay Tuchman has been appointed to head the new business, reporting to Nadir Mahmud, head of FX and Local Markets. Tuchman will be relocated from Sydney, where he is currently head of the Markets and Securities Services business for Australia and New Zealand.
A Tribunal at South Africa’s Competition Commission will officially hear details of Citi’s agreed settlement with local authorities to end charges of collusion and market manipulation on May 22.
Although the bank has reached an agreement with the Commission and agreed to pay ZAR 69.5 million for its role in the alleged manipulation, local sources say the deal has to be rubber stamped by the Tribunal. Citi was the first bank of 17 charged to settle with the Commission on February 20.
Steven Englander, global head of G10 FX strategy, has left Citi according to market sources.
P&L Report Card: Did anything happen in the prime brokerage space last year? For the second year in a row, developments in this field were few and far between, which probably indicates the focus on making sure risk systems are fully up to scratch on the part of providers. It obviously started with SNB Day, but has continued with a few further market events, and as a result the major PBs have not only continued to cut some of the tail risk among their client bases, but they have increased their monitoring of existing clients as well.
P&L Report Card: The next 18 months are going to be interesting for the banks’ research teams, not only do they have a rather erratic geopolitical situation to deal with, but they are also firmly in the firing line over MiFID II. Post-January 1, 2018 will be the time when we learn a lot more about how important clients actually think research is, and while paying for research is only a small part of the regulation, it will have a large impact on this segment of the FX business.
We have noted previously that the more in-depth reports are lightly read – partly this is a question of time, and partly it is a question of the value of such reports.
P&L Report Card: The key to a superb service to corporate FX clients remains flexibility and the ability to provide for a huge range of customers. From the biggest multinational with its very sophisticated technology and execution desk, through the standard corporate hedging desk, down to the corporation seeking to make international payments, no other client segment offers such a broad spectrum. Inevitably, given how the focus for years was on volume and market share, the top end of corporate town is well catered for by just about every bank.
Likewise, several banks have solutions for payments.
P&L Report Card: For yet another year we were thinking (yes, we know that should read “hoping”) that 2017 would be the year in which the FX options market’s structure was finally sorted out. We were optimistic over the availability of clearing services, customers were more open to structured solutions to their hedging problems, and the multi-dealer world – something we consider to be important for a market’s development – was looking up. A year on? Well not a lot has happened.
Volumes continue to struggle in the public markets and clearing has not taken off, but at least the event-driven nature of markets means that customers still see value in FX options. So, the future of the market is no closer to being defined than it was a year ago (actually, if we are being honest, four years ago).
For the second year in succession, UBS and JP Morgan have won the top two prizes in Profit & Loss’s Digital FX Awards.
For the fourth year in succession, UBS’s Neo won Best Platform, it was also named as Best Rates Platform and Best Structured Products Platform. Of note, UBS also won an unprecedented 10th Post Trade Award in a row.
Meanwhile JP Morgan reinforced its success from 2016 when it first won Best FX Platform by carrying off the award again in 2017. The bank also added three others to notch four trophies for the first time in the Digital FX Awards’ 15-year history.
The US Commodity Futures Trading Commission (CFTC) has issued two separate Orders filing and settling charges against two former Citigroup traders for spoofing US Treasury futures markets.
Stephen Gola and Jonathan Brims, who have been dismissed by the bank, are required to pay $350,000 and $200,000 in civil monetary penalties respectively. Both traders are banned from trading in the futures markets until six months after each has made full payment of his respective penalty. In addition, Gola and Brims are ordered to cease and desist from violating the Commodity Exchange Act’s prohibition against spoofing, as charged.
Sources familiar with the matter say that Charl Vleeschauwer is joining Citi in Sydney as part of the bank’s shift of its Asian spot desk to that centre.
Following his retirement from Citi, where he spent nearly 30 years and most recently served as global head of G10 FX, James Bindler, reflected at Forex Network London about the changes that he’s observed in the industry.
He’s also made a number of predictions regarding its future.
1. The line between banks and non-banks will continue to blur
“As always with all these things, it comes from both sides of the equation. Banks will get faster and high-frequency traders will seek capital to backstop their risk taking activities,” said Bindler.
Discussing the challenges facing market makers, Bindler noted that the cost of FX trading is generally rising, particularly for firms that need to use prime brokers to access the market.