Born again: Citi’s forex prime brokerage
After a $180 million gut-punch, the apex brokerage is now evangelising to amused rivals about the perils of mispricing
Citi’s foreign exchange prime brokerage (FXPB) was sitting pretty when its fall from grace came last August.
The group had amassed a sizeable portion of the $500 million FXPB wallet across the Street – its momentum secured in part, rivals suspect, by its position within Citi’s hard-charging forex trading business.
Then came razorlike cross-currents in the Turkish lira. A Citi client took a beating in the volatility, which ended up reverberating through Citi’s FXPB, resulting in a reported $180
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