Citigroup combines its stock trading and prime brokerage business

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Citigroup combines its stock trading and prime brokerage business GlobeBusiness

“As the industry continues to consolidate and margin pressures intensify, clients are looking for solutions that deliver best-in-class services,” co-heads of markets and securities services Carey Lathrop and Andy Morton wrote in an internal e-mail seen by Reuters.

“We believe that now is the time to create an integrated offering supporting the pre-trade, execution and post-trade requirements of our clients,” they wrote. The combined business will include broad trading and execution capabilities in addition to financing, hedging, clearing, and custody services, the memo said.

In its second-quarter results reported earlier this month, Citi’s trading revenue remained challenged for a third consecutive quarter, with fixed-income trading down 4 per cent, excluding a gain from Citi’s investment in Tradeweb, and equities revenue down 9 per cent.Citi’s markets and securities services division has been shaken up in recent months as the bank streamlines businesses to better serve the evolving needs to clients.

 

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