Former Citigroup Trader Ramchandani Joins Online Trading FirmJulia Verlaine and Ambereen Choudhury
Rohan Ramchandani, the former European head of foreign-exchange spot trading at Citigroup Inc. targeted in currency-rigging probes, joined online trading-services provider London Capital Group Holdings Plc.
Ramchandani began working at London Capital Group this week, according to a spokesman for the company, which offers spread-betting products to professional and retail clients.
Due to the on-going manipulation investigations, he’ll only handle spot foreign-exchange products, which aren’t regulated, the Wall Street Journal said earlier in reporting the move. Ramchandani confirmed his role and declined to comment further in a telephone interview today.
Ramchandani hasn’t been accused of any wrongdoing.
Spread-betting firms profit through the initial spread, or the difference between the price offered to clients on opposite sides of the same trade. They also charge interest on funds loaned to clients to boost the size of their trades.
Ramchandani was fired by Citigroup in January as regulators probed allegations of attempts to manipulate benchmark currency rates. He was part of a message group other traders in the industry referred to as “The Cartel,” which is under investigation, people with knowledge of the matter said in December.
Other senior currency traders have left Citigroup in recent months as foreign-exchange units around the world cope with rapid changes and cost-cutting pressures, in addition to global manipulation probes. Jeffrey Feig left his post as global head of foreign exchange in June to join Fortress Investment Group LLC. In February, Citigroup announced Anil Prasad would leave as currencies chief. He is preparing to a macro-hedge fund, Bloomberg News reported in July, citing a person with knowledge of the plans.