Stock Exchange Reuters: Citigroup renews management of Delta One trading unit

United States Bank Citigroup is looking for new leadership in Delta One trading, which sells complex investment products to investors, according to Reuters.

Citi is looking for a new leader for its forwarding unit in London in an announcement posted on the community service Linkedin.

The search, according to Reuters sources, coincides with the same time as a Delta One Head of Unit left his post at the bank. Citin Delta One units contributed to the sudden collapse of European stock markets in early May, according to unnamed sources in Reuters.

Director of that Delta One unit tells Reuters that he was not involved in the sudden collapse and his departure is unrelated. The director tells Reuters he was not at work for three weeks before the sudden collapse and resigned on May 3 due to a new job. He told me about his departure Reuters later clarified that it has no evidence of the director’s involvement in stock market events.

Helsinki The stock market and the rest of the European stock market experienced a large-scale collapse on Monday 2 May, with stock prices falling several percent in a matter of minutes.

Citi admitted to the news agency on Tuesday, May 3 To Bloombergthat the collapse was caused by an error in the assignment of one of its employees. The bank did not say which unit was involved.

According to Reuters sources, the Citin Delta One unit was affected by the error, but it was not to blame for the collapse.

Delta One units specialize in structured investment products that they sell to institutional investors and companies.

A structured investment product is often a combination of a risk-free investment and a derivative. The most typical structured investment product is an index-linked loan, the return on which consists of the development of the value of the stock index.

Sudden market crashes are not uncommon, and they have a well-established name, “flash crash”.

The best-known sudden crash is the 2010 flash crash in the United States, during which the world’s largest stock market fell for a moment by about ten percent.

Correction May 16, 2022 at 7:37 pm: Contrary to what was previously written in the story, based on the sources of the news agency Reuters, the departure of one of the directors of Citigroup’s Delta One unit is not related to the large-scale sudden collapse of the European stock market. Reuters later reported that the departure was due to a new job opportunity for the director outside of Cit, and the news agency had no evidence of that director’s involvement in stock market events.