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Citi says behaved appropriately in sterling 'flash crash'

LONDON Citi (C.N) said on Wednesday that its trading operations functioned appropriately in a thin and illiquid market during October’s “flash crash” in sterling, responding to a Financial Times report saying a trader at the U.S. bank exacerbated the pound’s fall.

“Sterling fell sharply following a news event just after midnight UK time, when the GBP spot foreign exchange market was extremely illiquid,” Citi said.

“Citi managed the situation appropriately and our systems and controls functioned throughout the period.”

The Bank of England, and the Bank of International Settlements, whose markets committee is overseeing the investigation, had no immediate comment on the Financial Times report.

(Reporting by Patrick Graham, editing by Nigel Stephenson)