Streamlining moves continue at Citigroup Inc. C. This time, the New York based banking giant is set to sell its margin foreign exchange business to U.S. based online foreign exchange market broker – FXCM Inc. and Denmark based investment bank – Saxo Bank. Terms of the deal remained undisclosed.
According to a filing on Friday, FXCM stated that the company is set to acquire the vast majority of margin forex accounts of Citigroup’s CitiFX Pro. FXCM will undertake the acquisition through its U.S. subsidiary, Forex Capital Markets LLC, and U.K subsidiary, Forex Capital Markets Limited. Per the filing, “After the close of trading on Friday, June 26, 2015, accepted CitiFX Pro accounts will be transferred to the corresponding FXCM entity.” Notably, CitiFX Pro traded more than $30 billion on an average per month in 2014.
Saxo Bank will acquire the client book of Citigroup’s margin FX business in Singapore. Per Claus Nielsen, Head of Markets at Saxo Bank , “Saxo Bank has been proud to facilitate trading on CitiFX Pro since 2007. It was a breakthrough initiative for Saxo when we first partnered up with Citi. We are pleased that the partnership has been a great success for both parties and respect that Citi has taken a strategic decision to sell its Margin FX business.”
The latest move by Citigroup does not come as a surprise, as the company remains focused on streamlining its operations. According to the company statement “Citi has made a strategic decision to sell its Margin FX business, including the CitiFX Pro and TradeStream offerings, to FXCM and Saxo Bank. We believe this transaction is in the best interest of Citi’s Margin FX clients, who will experience a seamless transition to seasoned online retail specialists that can skillfully service their needs. The sale is expected to be completed in the second quarter”.
Currently, Citigroup carries a Zacks Rank#3 (Hold). Some better ranked-ranked stocks in the finance space include Northern Trust Corporation NTRS, Central Valley Community Bancorp CVCY and HomeStreet, Inc. HMST. Both Central Valley and HomeStreet sport a Zacks Rank # 1 (Strong Buy), while Northern Trust carries a Zacks Rank# 2 (Buy).
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