Citigroup puts online forex trading platform on the slab

LONDON (ShareCast) - Citigroup Inc (NYSE: C - news) is looking for a buyer for its CitiFX Pro online forex trading service, according to reports Citi, thought to be the biggest player in the forex industry, wants to dispose of the online forex trading platform, according to to Reuters, which offers access to individuals and institutions to 130 currency pairs on different services.

Sources close to the situation pointed out that changes in the regulatory environment and capital requirements were thought be the reasons behind this decision.

New York-based Citigroup has laid off many employees and computerized many elements at its currency business in recent years in an effort to slim down the unit.

Losses at the wider currency division led to the group incurring a $150m loss as a result of the Swiss franc's appreciation in January, when the Swiss National Bank's abandoning of its euro cap led to brief but significant turmoil in the forex industry. In a separate issue, the bank has been investigated by US and European regulators for manipulation of foreign-exchange rates.

Last November Citi was expelled from the foreign-exchange market liaison group of the European Central Bank (ECB) after its part in the currency rigging scandal, while last month Citigroup and Barclays (LSE: BARC.L - news) were reported as being close to paying up to a combined $800m to settle a related lawsuit in the US.