LONDON Dec 7 Citi 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
(Reporting by Patrick Graham, editing by Nigel Stephenson)