Born again: Citi’s forex prime brokerage

After a $180 million gut-punch, the apex brokerage is now evangelising to amused rivals about the perils of mispricing

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Citi’s foreign exchange prime brokerage (FXPB) was sitting pretty when its fall from grace came last August.

The group had amassed a sizeable portion of the $500 million FXPB wallet across the Street – its momentum secured in part, rivals suspect, by its position within Citi’s hard-charging forex trading business.

Then came razorlike cross-currents in the Turkish lira. A Citi client took a beating in the volatility, which ended up reverberating through Citi’s FXPB, resulting in a reported $180

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