Citi will drop links to two-thirds of the existing foreign exchange platforms it is using, in a move to consolidate technology and reduce costs.
Citi will reduce the number of FX platforms it uses from 45 to 15 by the first quarter of 2020, citing anonymous sources. The report added that the move to cut links could save the bank $5-10 million per year.
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Lower FX volatility over the past decade has led banks to invest heavily in electronic trading systems to reduce costs and maximize margins. But a moderated outlook for the FX trading business is likely to drive providers to rethink their offerings.
Alongside J.P. Morgan, Citigroup is one of the two largest FX traders by market share, according to a 2018 Greenwich Associates report, highlighting advantages in its technology and client networks.