All morning, mainstream media has been down-playing the insolvency of various retail-focused FX brokers using words like "contained" and even suggesting retail 'moms-and-pops' should not be allowed to trade FX. Now, we get more news from a non-retail institution:
- *CITIGROUP SAID TO LOSE MORE THAN $150 MLN ON CURRENCY MOVES
So should Citi be banned from FX trading too? It appears so - Citi's head of European FX sales is 'said to leave' the company.
- *CITIGROUP HEAD OF EUROPEAN INVESTOR SALES, FX, SAID TO LEAVE
As Bloomberg reports,
Citigroup Inc., the world’s biggest currencies dealer, lost more than $150 million after the Swiss central bank decided to let the franc trade freely against the euro, according to a person briefed on the matter.
The losses occurred on the New York-based bank’s trading desks and aren’t tied to its relationships with FXCM Inc. and other retail trading platforms, said the person, who asked for anonymity because the information hasn’t been disclosed publicly.
Citigroup Inc.’s head of European investor sales, foreign exchange and local markets, Alex Jackson, left the firm this week, a person with knowledge of the matter said.
His departure isn’t related to investigations into the rigging of the foreign-exchange market, according to the person, who asked not to be identified because the move isn’t public.
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See what happens when you can't rig themarket?