Citigroup Inc. carried out some of the natural gas trades that are being investigated by the Office for Gas and Electricity Markets and the Financial Services Authority.
“Citi’s activity in the natural gas market on Sept. 28 was related to client activity, and all Citi trades were completed at levels consistent with the context of the market at the time they were executed,” Jeffrey French, a spokesman for the bank in London, said in an e-mailed statement yesterday.
Chris Lock, a spokesman for Ofgem, and Chris Hamilton, a spokesman for the FSA, both declined to comment when contacted by telephone today.
The U.K.’s $480 billion gas market has come under the spotlight after a journalist at the ICIS price agency reported deals he suspected were being done below “prevailing” levels.
ICIS journalist Seth Freedman, a former broker at Insinger de Beaufort NV and Eden Financial Ltd., notified his managers of what he suspected was an attempt to manipulate assessments on Sept. 28. ICIS reported the case last month to Ofgem, which said in a Nov. 13 statement it’s “looking into the issue.” The FSA said Nov. 12 it had received the information.