Citi makes major structural changes

Citi makes major structural changes

Citi has combined its prime finance, futures and OTC clearing, global custody, global fund services and agency securities lending businesses into one entity, Global Investor/ISF has exclusively learned.

The new combined division will be called Global Investor Services, led by Okan Pekin.

In an internal memo seen by Global Investor/ISF, Pekin said that the new group will create a “powerful value proposition” across financing, execution, collateral management, custody and fund services.

The group will operate across the three dimensions of product, region and function, all working closely together. The division is part of the capital markets and securities services group which is in turn part of the institutional clients group.

The move follows an announcement from Citi in 2012 that it would seek to create global consistency across the prime finance and futures/OTC clearing businesses.

There will be some changes to senior management as a result of the new group.

David Murphy, who relocated to the US last year to head up prime finance in the Americas, will now run prime finance globally, which will include prime finance, delta one and agency securities lending. David Martocci, will continue to run agency securities lending globally, reporting to Murphy.

JV with equities in delta one will continue to be managed jointly by Murphy and Michael Pringle. Sanjay Madgavkar, global head of FX prime brokerage will report to Murphy in addition to his existing reporting line to Jeff Feig, global head of G10 FX.

Rajen Shah will now report to Jerome Kemp who is global head of futures and OTC clearing. A spokesperson for Citi said that Shah will continue in his role as global head of collateral management and Emea head of securities finance.

Sanjiv Sawhney, previously Emea head of securities and fund services (SFS), will run global custody and alternative investor services. The memo said that Sanjiv will oversee the growth of Citi’s global custody platform and also head up its hedge fund, private equity and wealth services businesses.

Pat Curtin, previously head of long fund services, will run global fund services which will include fund administration, transfer agency and middle-office services.

Alan Pace, currently head of prime finance and futures sales, will run global sales for Investor Services, which will combine all sales and client facing functions across the business including generalist and specialist sales, relationship management, capital introduction and advisory, client executives, client solutions and implementations teams.

Pace will join forces with Dirk Jones over the coming months to create an integrated sales organisation. Dirk Jones will transition to his new role as global head of issuer services by the end of April once the integration is complete. Pace will also report to Jim O’Donnell, global head of sales and relationship management.

Richard Gordon will run operations for Investor Services,  reporting to Jon Beyman and Mike Whitaker. Mary Fenoglio will manage custody operations across global custody and direct custody and clearing (DCC) also reporting to Jon Beyman and Mike Whitaker as well Lee Waite, global head of DCC.

Changes to regional leadership include the appointment of Shahmir Khaliq - head of ICG’s marginal client initiative - as head of investor services in North America. Nick Roe who previously ran prime finance and futures will run Investor Services in Emea, while David Russell - who previously managed SFS in Asia - will run Asia including Japan. Alejandro Berney will continue to manage Latin America and Roberto Gonzalez Barrera will continue to oversee Mexico.

The memo said that further announcements will follow in due course, including the new fiduciary head for the Investor Services group. Members of the fiduciary and conflicts committee will also be revealed.