Citigroup has recorded a staggering $6.1tn in FX trading volumes from hedge fund clients in the first four months of 2025 – a 23% year-on-year increase – as heightened volatility and strategic investment in trading infrastructure drive gains, according to a report by Bloomberg.

The surge, led by Citi’s global FX team under Flavio Figueiredo, reflects the bank’s growing traction with hedge funds seeking speed and reliability during market turbulence, such as the reaction to the “Liberation Day” tariffs announced by President Donald Trump in April.

While traditionally dominant in corporate and sovereign FX flows, Citi is now aggressively expanding its hedge fund franchise, aided by technology upgrades, reduced latency, and targeted hiring – particularly in FX options and electronic execution.

In a market where hedge fund activity is increasing, especially in regions like the Middle East, Citi’s efforts to scale client coverage from hubs like London are paying off. The growth aligns with Citi’s internal target to boost FX revenue by 25% over four years – a pace that outstrips broader FICC sector expectations.