Citi to overhaul London trading team linked to ‘flash crash’

Citi to overhaul London trading team linked to 'flash crash'

Three insiders informed Dailion that Citigroup is changing the leadership of one of the teams linked to the ‘flash crash’ that sent European stock markets crashing this month.

According to a job posting on the professional networking site LinkedIn, Citi is looking to hire a new Head of forwarding Trading for its Delta One operations based in London.

Ali Omari, the EMEA Head of Delta One Forwards and Sectors, has left the US bank for reasons unconnected to the incident, according to two persons familiar with his departure who asked not to be identified.

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On Tuesday, Omari informed Dailion that he had been out of the office for three weeks prior to the May 2 flash crash, and that he only returned on May 3 to present his resignation from the bank before taking up another position.

Two of the three persons familiar with the situation said the bank’s Delta One trading activities were linked to, but not responsible for, the data entry mishap that caused the pan-European STOXX 600 equity benchmark to tumble by more than 2% in less than two minutes of trading.

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Citi has previously admitted that one of its workers was responsible for the May 2 market drop but has not specified which teams were involved.

Citi declined to comment on the nature and timing of the recruiting plans in its Delta One business through a spokeswoman.

Delta One desks market structured financial products to sophisticated investors such as pension funds, hedge funds, and large corporations.

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The news of the changes in the trading unit comes as Citi is overhauling its risk management and controls systems from the ground up.

After the US Office of the Comptroller of the Currency (OCC) withdrew a 10-year-old order in late April, Citi is still subject to at least two consent orders pertaining to its internal controls.

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