It is certainly tough at the top at British spread betting and CFD company City Index, as the company yesterday made a further change within its senior management, this time ousting Martin Belsham, the company's CEO.
According to research conducted today by Forex Magnates, Mark Preston will be assuming responsibility as interim CEO. Mr. Preston, who relinquished his senior position at Lloyds Bank prior to the financial giant's disastrous Merger with Halifax Bank of Scotland (HBoS) to join City Index in mid-October this year, was brought on board in the capacity of Executive Chairman by ICAP Group CEO, Michael Spencer, who is a major shareholder in City Index.
As a result of Forex Magnates having contacted City Index today in order to gain a corporate conclusion as to the reasons for Mr. Belsham's departure, a spokesman explained to Forex Magnates that, "City Index Group Limited wishes to announce that, after nearly five years as Chief Executive Officer, Martin Belsham is leaving the business."
"Mr Belsham will be stepping down from the Company's Board of Directors effective immediately. Mark Preston, the Company's Executive Chairman, has been appointed as the Company's interim Chief Executive Officer and is expected to serve on a short-term basis. The Company will immediately commence a search for Mr Belsham's replacement."
Mr Preston, Executive Chairman and interim CEO said, "Martin has made a valuable contribution to the growth of our business. We thank him and wish him well in his future endeavors," concluded the spokesman.
Relationship Breakdown
Upon further investigation of the circumstances which surround City Index's decision to terminate Mr. Belsham's position as CEO, industry sources with knowledge on the matter have informed Forex Magnates that, in contrast to the somewhat generic response provided by City Index's corporate spokesman, Mr. Belsham's professional relationship with Mr. Spencer had broken down some time ago. As a result of this, Mr. Preston was recruited, tasked with reviewing whether Mr. Belsham was the right person to take the business forward.
This is not the first time in recent months when City Index has dealt a blow to senior management personnel, with two notable key executives having exited the company just one week before Mr. Preston was brought on board, one having been Paul Cassidy, the company's Global Head of Marketing, and Global Head of Trading and Research, Dan George on the very same day.
Whilst both Mr. George and Mr. Cassidy resigned of their own accord, in September this year, City Index let Simon Bird, the firm's COO go, citing the need to make organizational changes as the driving factor, however, a point of interest is that Russell Leigh, ex CEO of Dealstream, the infamous and ill-fated South African CFD firm at the center of investigation by law enforcement agencies in its home country, had quietly assumed a position at City Index's Israel office in January this year.
