Citigroup to Restructure its FX Business Operations

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

Citigroup

Citigroup to Restructure Its FX Business Operations

June 19, 2019

Citigroup

US-based multinational investment banking and financial service provider Citigroup Inc recently made an announcement revealing its plans to merge two of its Forex related business operations into one single business operation. The banking giant announced that the decision to merge two units was agreed upon post its recent enterprise-wide review owing to a series of consumer scandals and as some of its business ventures failed to meet expected targets.

As per the announcement, the forex division, local markets, and G10 currency business units will be merged and will function as a single integrated department. The banking service provider hopes that this move of restructuring its business will make it easier for cross-selling of their products while bolstering the group’s risk management process at the same time.

As per data, Citigroup is the fifth largest currency trading firm in the global market as per market share coming after firms like JP Morgan and UBS. As per an internal memo of Citigroup published by Reuters recently, the co-heads of the market division were quoted commenting to their staff that, “We believe this more streamlined operating model will drive better client service, risk management, and profitability”. Despite the integration of various business units into a single department and similarities in the respective unit’s product offerings, the operating units will retain their current branding and offerings in the real world while sharing their technological resources. As part of this restructuring plan, the group’s banks will separate its G10 rates finance team from the newly merged forex business unit.

But, the G10 business operations from both banks and restructured forex unit will operate under the same unit leader which is a newly created post. The group is yet to make an announcement on who will head this unit. Two notable factors among various reasons for restructuring include the group’s FX prime brokerage unit losing nearly $180 million on loans to Asian hedge funds and the group’s institutional client business failing to meet annual targets in 2018. Citigroup has greatly enhanced its FX offerings this year post joining UBS AG to launch electronic currency trading and pricing platform in Singapore- one of Asia’s biggest FX hubs. The product offerings from this joint venture are expected to go live by the end of 2019 and is said to support 23 spot currencies, including all currencies from the G10 group.

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