Citigroup has increased hiring and improved technology to ramp up its equities trading business, according to an exclusive report by Reuters. Shartia Brantley reports.
Citigroup plans to rebuild its equities trading business, according to an exclusive report by Reuters. The bank has ramped up staffing and improved technology to attract new clients. In 2014, Citi earned about $3 billion in equities trading, while dominant players, such as Goldman Sachs and Morgan Stanley, generated more than $6 billion. Equities trading has outpaced fixed income trading over the past 18 months and, as European rivals realign their investment banking units, the timing is ripe for Citi, says Sandler O'Neill's Jeff Harte: (SOUNDBITE) JEFF HARTE, PRINCIPAL, EQUITY RESEARCH, SANDLER O'NEILL (ENGLISH) SAYING: "I think, now they kind of have the opportunity to sit back from a strong capital position and say 'where do we need to invest for growth now' as opposed to kind of solving the crisis, which it has been for a few years." The report says, Citi plans to target mid-size hedge funds and offer services such as credit monitoring and trading algorithms to boost fees. Harte says, he will be looking for stability and gradual revenue growth from Citi.