Bloomberg reporters Julia Verlaine and Ambereen Choudhury are reporting today that former European head of FX spot trading at Citigroup (NYSE:C), Mr. Rohan Ramchandani who was targeted in currency rigging probes (fired, but not charged with any wrong-doing), joined online trading services provider London Capital Group. Mr. Ramchandani began working at London Capital Group (LON:LCG) this week, according to a spokesman for the company, which offers FX and spread betting products to professional and retail clients.
Also today…LCG shaking-things-up: Kevin Ashby resigns as CEO of London Capital Group
Due to on-going probes into the rigging scandals, the Wall Street Journal reported earlier on the move that Mr. Ramchandani will work in spot FX products, which are not regulated. Ramchandani confirmed his role and declined to comment further in a telephone interview today with BusinessWeek.
Mr. 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 FX executives have left Citigroup in recent months as Forex units around the world cope with rapid technological changes and cost-cutting pressures amid muted trading volumes, in addition to global manipulation probes. Jeffrey Feig left his post as global head of foreign exchange at Citi in June to join Fortress Investment Group LLC. In February, Citigroup also announced currency chief Anil Prasad would leave.