Citigroup has made four hires to its London power and gas sales team, as the US investment bank continues to build its commodities arm while its peers scale back in the sector

Citigroup has made four hires to its London power and gas sales team, as the US investment bank continues to build its commodities arm while its peers scale back in the sector

Citi adds four to growing commodities roster

Suzi Ring

02 Jul 2013

Citigroup”>Citigroup has made four hires to its London power and gas sales team, as the US investment bank continues to build its commodities arm while its peers scale back in the sector, Financial News has learnt.

Citi adds four to growing commodities roster

Branko Pribicevic will join Citi in September from energy trading company Vitol to take up the role of head of European power and gas sales and origination, according to two people familiar with the situation. He has been at Vitol since 2009, prior to which he was at Morgan Stanley, according to his LinkedIn profile. Pribicevic did not respond to a LinkedIn request for comment.

Colin March is set to join Citi from Morgan Stanley. According to the UK’s Financial Services Register he had been at Morgan Stanley since 2007 but left the bank last month. March could not be reached for comment.

Former Goldman Sachs executive director Diana Beverly and Benjamin Davis from Macquarie Bank will also join Citi’s power and gas group in the coming months. Beverly was at Goldman Sachs for six years until 2012, according to one person familiar with the situation. Davis has been at Macquarie since 2009, according to the Financial Services Register.

Beverly did not respond to a LinkedIn request for comment. There were no contact details available for Davis.


Citi has been taking steps to grow its commodities arm at a time when other investment banks have been doing the opposite due to increased capital requirements and tighter restrictions around proprietary trading. The Wall Street Journal reported last month that Morgan Stanley plans to cut 10% of the staff in its commodities unit, or about 30 jobs.

Deutsche Bank has also been scaling back its commodities business in some areas. This year the bank has put parts of its European physical gas and power books up for sale, which has led to about 10 traders being cut this year, according to a person familiar with the plans.

Other departures from the bank’s commodities business in recent months include David Silbert, global head of commodities; Ray Key, global head of metals trading; and John Redpath, global head of oil products and agricultural trading.

In contrast, Citi recently hired a senior metals duo from UBS to lead its global metals sales and base metals trading divisions – moves first revealed by Financial News. Rick McIntire will join Citi from UBS as global head of metals sales this month, while Dylan Morgan joined the bank from UBS as co-head of base metals trading in May.


Other notable hires include Jose Cogolludo, the former BNP Paribas global head of sales and marketing for commodity derivatives, who joined Citi as global head of commodities sales at the close of last year; and Kris Van Broekhoven, who joined from Deutsche Bank as global head of commodity finance in September.

According to research firm Coalition, Citi was ranked as a “tier three” investment bank commodities sales and trading in its 2012 investment bank league table. Tier three means the bank ranks between seventh and tenth among the top ten investment banks for sales and trading revenue.

Just three of 10 of the largest investment banks in commodities trading increased revenues from this business last year, according to a JP Morgan report published in April. Goldman Sachs, Morgan Stanley, Macquarie Group, Deutsche Bank, Barclays, Standard Chartered, Credit Suisse, RBC Capital Markets, BNP Paribas and UBS shared total commodities trading revenues of $6.74bn last year, down from $7.04bn during the previous 12 months. Of these, only Macquarie, Barclays and RBC saw figures increase.

JP Morgan did not include itself or Citi in the April report.

Managers fret over loss of broker service

Managers fret over loss of broker service

The US buyside broadly favours the sellside’s increasingly holistic approach to serving their equity trading needs, but is concerned that the move to combine high and low-touch trading may compromise the service they receive.

Managers fret over loss of broker service

Although 85% of senior and head traders at US buyside firms prefer an integrated team of high and low-touch traders, such teams need to be carefully constructed, according to a survey of 41 senior and head traders by capital markets consultancy Woodbine Associates.

The combination of electronic – or low-touch – trading services, with relationship-driven – or high-touch – sales traders for equities is becoming increasingly common because brokers are under pressure to reduce costs as trading volumes have failed to recover to pre-crisis levels.

Goldman Sachs, US broker dealer Knight Capital – which is close to being acquired by electronic market making firm Getco – and Citi are among the firms that have sought closer ties between their high- and low-touch desks in recent months.

Speaking to Financial News, Matt Samelson, principal at Woodbine Associates and author of the report, said: “Although there has been pressure on the sellside to reduce headcount and coverage, US brokers are experimenting with how to best serve their buyside clients. All of the buyside firms we questioned wanted a service that offers them the broadest and most efficient access to liquidity, without wasting their time.”

 Mark Kuzminskas, head of equity trading at Robeco Investment Management, added: “The convergence of brokers’ high- and low-touch services may appear to be a more efficient coverage model, but the effectiveness of this transition depends on us clearly defining the parameters of our relationship with that broker. Any broker looking to offer us a value-added service in this way also needs to fully understand our trading methodology and coverage expectations.”

Around a third (32%) of those surveyed said there was room for improvement in how separate trading desks collaborated, but 44% believed closer ties between low- and high-touch desks “was a recipe for compromise and abuse”.

Concerns were even more prevalent when survey respondents were asked for their view on using a single point of contact at a broker to service both sales trading and electronic trading flows, with 84% saying it could have a negative impact on the service they receive.

Of the 84%, the primary worry was the risk of a diminished service by brokers – voted for by 47% of those questioned – followed by the potential to lose anonymity, cited by 37% of respondents.


Electronic trading allows buyside traders to send orders directly to the market, via a broker’s infrastructure, allowing their orders to stay anonymous and avoid market impact. If electronic flows are visible to sales traders, some buyside firms believe this anonymity could be compromised.

“There are definitely concerns on integrity. If buyside firms expose their orders to a wider range of trading desks, they need to be assured their information will not be abused,” said Samelson.

“It’s not a matter of haphazardly combining groups. The view among buyside firms is that the market is too complicated for one person to do all these specialised functions well. Brokers should be looking at ways to consolidate equity trading desks, but the resulting service needs to be client-specific,” he added.

— write to and follow on Twitter @anishpuaar


The Asset – Magazine-Facilitating Growth in Asia through Shared Services

The Asset – Magazine-Facilitating Growth in Asia through Shared Services.

CITI and US Minority Broker Dealer Events 2013

On April 17th, Equity Capital Markets (ECM) and Citi Supplier Diversity partnered to host the fourth Annual Minority-and Women-Owned Broker Dealer’ s Breakfast.

Note 1st the recognized Networks:

Recognized networks included:

• African Heritage

• Asian Pacific Heritage

• disABILITY (focused on people with disabilities and the caregivers of people with disabilities)

• Generations

• Hispanic Heritage

• Identity (employees from different nationalities)

• Military Veterans

• Parents

• Pride (focused on the lesbian, gay, bisexual and transgender community)

• Roots (multicultural)

• Women

There were 16 firms were in attendance, welcomed by Citi’ s new Director of Supplier Diversity, Illonka Javette Hines; Deputy Director, Deloris Day Johnson; and ECM’ s Beatrice Faughnan, Vice President. Rick Bartlett, Managing Director of Equity Capital Markets, and Phil Drury, Managing Director of Citi Syndication, also participated in giving an overview of the equities market.
ECM and Citi Supplier Diversity, a part of Citi Procurement Services, have collaborated in creating programs that allow different businesses in Citi to work together and to give minority- and women-owned companies an opportunity to do business with Citi. Programs such as the breakfast allow equities professionals to network, share ideas, discuss trends in equities, and receive industry insight from Citi.
Bartlett and Drury provided an overview on the current state of the industry, market trends, and where the broker dealers can best capitalize on financial opportunities. Bartlett emphasized that, a “more inclusive environment is important to the franchise;” a goal the program is committed to achieving.
Marie Mosely, Director of Global Operations for Procurement, closed the breakfast by emphasizing the importance of diversity in and outside of Citi: “Purchasing power is something we must manage responsibly. Procurement is a lever to provide superior service to our customers. Our supply base should mirror our market and who we serve.” ECM and Supplier Diversity are well on their way to creating value for our shareholders and mutual beneficial relationships with our partners.


Note that their Diverse Supplier Program rules are at the link below.

Bravura Solutions provides portal integration behind Aviva’s online adviser system

Bravura Solutions Limited (Bravura)(ASX: BVA), a leading global supplier of transfer agency, wealth management and life insurance software applications and professional services, today announced the successful completion of a joint project with Citi and Aviva to incorporate its Bravura hosted wrap

via Pocket June 03, 2013 at 06:39PM

Citi includes segregated accounts to collateral offering

Apr 09, 2013

Citi includes segregated accounts to collateral offering

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Global banking house Citi will expand its custody offering to include segregated collateral accounts as central counterparties (CCPs) prepare to offer such accounts in line with new regulations.

Citi has expanded its OpenInvestor suite to include segregated collateral custody accounts to help clients mitigate counterparty risk and drive greater collateral efficiency, it announced today.

Both Title VII of the US Dodd-Frank Act and the European markets infrastructure regulation (EMIR) require buy-side firms seeking the safest collateral options to establish segregated accounts with CCPs for OTC derivatives trades.

“The possibility that every OTC relationship may need collateral accounts under new regulations has driven client demand for more efficient solutions,” said Chandresh Iyer, managing director, investor services, at Citi.

“These services draw upon our deep understanding of relevant business issues to streamline the technical and operational challenges of managing all types of collateral assets across multiple counterparties,” he said.

Under the new offering, Citi will act as an intermediary between investor and secured party for tri-party collateral account control arrangements, holding collateral in a segregated custody account. Daily collateral monitoring and the ability to reinvest cash collateral into money market funds through a central online portal will also be available.

In the UK, buy-side firms are keen to establish segregated accounts with CCPs as they prepare to meet EMIR rules, but clearing houses have been slow to develop the accounts.

Jane Lowe, director of markets for UK buy-side trade body the Investment Management Association  in December told that UK institutional investors wanted more progress on segregated accounts.

“Clearing houses have been working on a client account that offers the highest level of security for assets and positions since last year, but none are ready yet,” Lowe said. “Some on the buy-side want to adapt to the new clearing regime now, but CCPs have not yet established the details of these fully segregated accounts.”

Options Continues Expansion with New FX Trading Destinations, Faster Route to Chicago

Options, the pioneering provider of the Options PIPE® Private Financial Cloud, a managed infrastructure platform for the trading and alternative investment communities, announced today it has expanded connectivity to additional global foreign exchange markets and has upgraded connectivity between

via Pocket March 20, 2013 at 10:02PM

Options expands FX connectivity, upgrades NJ to Chicago route–upgrades-nj-to-chicago-route

First Published Tuesday, 12th March 2013 from Automated Trader : Automated Trading News

Options continues expansion with new FX trading destinations, faster route to Chicago

New York – Options, the provider of the Options PIPE Private Financial Cloud, a managed infrastructure platform, has expanded connectivity to additional foreign exchange markets and has upgraded connectivity between the major US trading venues.

Options now provides clients with connectivity to more than 60 markets, including low latency connectivity in the NJ2 and NY4 data centers to Barclays, Citi, Credit Suisse, Currenex, Deutsche Bank, EBS (ICAP), FXAll, Reuters Dealing, UBS and Hotspot FX (Knight).

“Our new connections to global FX markets reflect our ongoing strategy of offering direct connections to every significant trading venue globally on the Options PIPE platform,” said Options CEO Nigel Kneafsey.

Options also announced that it recently completed the upgrade of its primary route from New Jersey to Chicago with a 14.1 millisecond round trip time.

“Quantitative trading outfits and the broader alternative asset community are increasingly entrusting Options to operate their infrastructure around the world across more asset classes and markets, and we’re gratified by it,” Kneafsey said. “With 20 years of organic growth and 10 years of operating production trading infrastructure as a service, we’re gaining momentum and investing more and more capital into the platform over time.”

Nigel Kneafsey, CEO, Options

Nigel Kneafsey, CEO, Options

“Our new connections to global FX markets reflect our ongoing strategy of offering direct connections to every significant trading venue globally on the Options PIPE platform.”

FX News – Citi Partners with ThinkLiquidity

First Published Thursday, 17th January 2013 from Automated Trader : Automated Trading News

Partnership to offer liquidity through bridge and risk management solutions

London – Citi has formed a new partnership with ThinkLiquidity and is now able to offer CitiFX Tradestream through ThinkLiquidity’s proprietary bridge and risk management product.

ThinkLiquidity, established in the third quarter of 2012, provides risk management solutions for foreign exchange brokers and specializes in revenue maximization technologies constructed in-house.

Its risk management products are designed by traders and risk managers, illustrating ThinkLiquidity’s belief that technology should adapt to trading firms and trading firms should not have to adapt to outdated technology.

Jeff Wilkins, ThinkLiquidity managing Director, commented “Citi is known and trusted throughout the industry and we are very pleased to partner with them. We could not be happier with the pricing and execution, but equally important is the client focused relationship management that Citi brings to the table. We believe that we offer an industry-leading technology, and now with Citi as a partner, we are able to offer risk management solutions that will enable brokers to focus on growing their business with a leading bank counterparty.”

CitiFX Tradestream gives mid-sized institutions access to aggregated liquidity from a selection of liquidity providers without the need to engage a prime broker or a third party technology firm for price aggregation.

Alex Knight, Global Head of Margin FX Trading at Citi, commented “We are very pleased to offer CitiFX Tradestream through ThinkLiquidity’s risk management technology. By partnering with key vendors like ThinkLiquidity we are able to provide a one-stop solution to mid-market FX brokers.”

Citi and Meta Trader 5 gain traction amongst brokers with the integration of CitiFX TradeStream

Following the successful integration of Citi’s TradeStream solution with the Meta Trader 5 trading platform in 2012, a number of brokers have now successfully deployed the combined solution.

via Pocket January 27, 2013 at 01:40PM

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