Goldman Sachs FX Trading Head to Leave Firm

Original story by Wall Street Journal

FX TradingGoldman Sachs Group Inc. GS +1.55% ‘s fx trading unit is shedding a senior executive for the second time in just a few months.

Mitesh Parikh, the bank’s European head of spot foreign exchange trading based in London, is leaving to join a hedge fund, according to people familiar with the matter.

These people said that his departure is unrelated to a global probe into currency markets which has so far led to the suspension or departure of more than 30 traders at top foreign exchange dealing banks.

Mr. Parikh couldn’t immediately be reached for comment. His departure was first reported by Bloomberg.

The senior trader has been at Goldman Sachs since 2002 according to the Financial Conduct Authority register. His move out of the bank follows that of Steven Cho, partner and global head of spot and forward foreign exchange trading in New York, who left Goldman Sachs in February. Mr. Cho left the bank after almost 20 years to set up a hedge fund.

In March the bank said it had hired Kayhan Mirza as global head of foreign-exchange trading. Mr. Mirza was previously at J.P. Morgan Chase JPM +1.91% & Co where he was global head of foreign-exchange options and head of FX trading in Europe, the Middle East and Africa.

Mr. Parikh’s departure comes at a troubled time for the $5.3 trillion a day foreign exchange industry, which has fallen under the scrutiny of global authorities investigating possible market manipulation efforts by traders.

A challenging market environment for large currency dealing houses–caught between a reputation damaging investigation over industry practices and a fall in market volatility to record low levels—has increased the pressure on banks to cut costs.

Other recent departures from the banks side of the industry include Jeff Feig, formerly atCitigroup Inc. C +2.48% and Christopher Fahy, previously at Deutsche Bank AGDOD -0.10% who joined private-equity firm Fortress Investment Group FIG +0.15% LLC earlier this year.

Rohan Ramchandani, former European head of foreign-exchange spot trading at Citigroup who was fired by the bank in connection with the global investigation into currency markets, started a new role last week at London Capital Group, LCG.LN -2.56%an online trading services provider.

Gary Beal