Sources cited by Reuters claim that Citigroup is reorganizing the leadership of one of the teams associated with a 'flash crash' that shook European stock markets.
Located at its European headquarters in London, Citi is looking for a new Head of Forward Trading to join its Delta One operation. The job vacancy is posted on the professional networking site LinkedIn. Two people with knowledge of the departure, who declined to be identified, said that Ali Omari, who was Delta One's EMEA Head of Forwards and Sectors, left the US bank for reasons unrelated to the event. However, Reuters clarified that Omari was not involved in the event and his departure was unrelated.
Prior to the flash crash on May 2, Omari said that he was not at work for three weeks, and returned to work only on May 3 to tender his resignation before taking up another job. In a Reuters report, some sources said that Delta One's trading activities were linked to, but did not cause, the data input error that caused the pan-European STOXX 600 equity benchmark to fall by more than 2% points in less than 2 minutes of trading.
As of May 2, the company confirmed that at least one employee was responsible for the error, but it has not provided details about which team was responsible.
Delta One Desk's Usage
Many sophisticated investors, including pension funds, hedge funds, and blue-chip corporations, use Delta One desks to purchase structured financial products. Citi is undergoing a comprehensive overhaul of its risk management and controls systems at the same time as the change in the trading unit.
Despite a ten-year-old order lifted by the United States' Office of the Comptroller of the Currency in late April, Citi is still subject to at least two consent orders related to its internal controls.
Citigroup recently released its results for the first quarter of 2022. Citigroup's net income for the reported period was $4.3 billion, which is 46% lower than last year.
