Banking

Exclusive: Citi to overhaul London trading team linked to ‘flash crash’

Citigroup (C.N) is overhauling the leadership of one of the teams linked to a ‘flash crash’ that sent European stock markets tumbling this month, three sources told Reuters.

Citi is looking to name a new Head of Forward Trading in its Delta One operations based at its European headquarters in London, a job vacancy posted on professional networking site LinkedIn shows.

Ali Omari, who was EMEA Head of Delta One Forwards and Sectors, has left the U.S. bank in a decision unrelated to the event, two people with knowledge of his departure, who declined to be named, said.

Omari told Reuters on Tuesday that he was not at work for three weeks prior to the May 2 flash crash, and only returned to the office on May 3 to tender his resignation from the bank before taking up another opportunity.

Two of the three sources familiar with the matter said the bank’s Delta One trading activities was linked to, although not responsible for, the data input blunder that caused the pan-European STOXX 600 equity benchmark to fall by more than 2 percentage points in around two minutes of trading.

Citi has previously confirmed that one of its employees was behind the error that led to the market fall on May 2, but has not given details on which teams played a role.

A spokesperson for Citi declined to comment on the nature and timing of the hiring plans in its Delta One operations.

So-called Delta One desks sell structured financial products to sophisticated investors including pension funds, hedge funds and blue chip corporate clients.

News of the changes in the trading unit comes as Citi is pursuing a root-and-branch revamp of its risk management and controls systems.

Citi is still subject to at least two consent orders by U.S. regulators related to its internal controls after the United States’ Office of the Comptroller of the Currency (OCC) lifted a 10-year-old order in late April. read more

Additional reporting by David Henry in New York; Editing by Elisa Martinuzzi and Alexander Smith

This article was originally published by Reuters.

Global Business Magazine

Recent Posts

Baghdad’s State Banks Face Lending Slowdown as Iraq Pushes for a More Active Financial Sector

Iraq's banking sector is facing renewed pressure to strengthen lending activity after most state-owned banks…

2 weeks ago

Kuwait City’s E-Commerce Market Moves Into Its Next Phase as Digital Retail Enters a More Mature Cycle

Kuwait's e-commerce market is moving beyond its initial adoption phase, with stronger digital infrastructure, evolving…

3 weeks ago

Amman Banking Sector Gains Momentum as Jordan Kuwait Bank Posts Strong First-Half Growth

Jordan's banking sector is showing continued resilience as Jordan Kuwait Bank (JKB) reported net profit…

3 weeks ago

Bahrain’s Cybersecurity Sector Reaches Global Stage as Beyon Cyber Takes Bahraini Expertise to Black Hat USA

Bahrain's cybersecurity industry is gaining international visibility as Beyon Cyber becomes the first Bahraini cybersecurity…

3 weeks ago

Muscat’s Digital Payments Push Gains Momentum as Thawani Pay and Network International Deepen Fintech Collaboration

Oman's fintech ecosystem is moving into a more collaborative phase as payment technology providers and…

3 weeks ago

Cairo Accelerates Its AI Ambitions as Egypt Expands Research, Education and Digital Innovation

Egypt is stepping up its artificial intelligence ambitions as Cairo becomes an increasingly important centre…

3 weeks ago