CLEARSTREAM, CITI PARTNER IN COLLATERAL MANAGEMENT (ENG)

     (The following press release from Deutsche Boerse was received by e-mail. 
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News Release
Deutsche Boerse Group
10.01.13 
Clearstream and Citi partner in collateral management 
* Clearstream announces new partner for its agent bank service Liquidity
Hub Connect
* Unique model: Clearstream handles global collateral management while
client assets remain with Citi
* Citi customers gain all the security and efficiency advantages offered
through Clearstream’s Global Liquidity Hub 
Clearstream and Citi have formalised their plans to a customised tri-party
collateral management solution that Citi will offer to its customers. The
two
companies have now signed a Letter of Intent to move ahead with their
collaboration to enable joint customers to benefit from Clearstream’s
award-winning Global Liquidity Hub, an integrated suite of collateral
management and securities lending services. 
The Liquidity Hub Connect service will enable Citi customers to consolidate 
their collateral holdings for use within the Global Liquidity Hub in order
to
gain efficient coverage of their global exposures from a single optimised
collateral pool. The service delivers twofold benefits as customers retain
their asset portfolios within Citi’s extensive custody network while
Clearstream’s collateral management engine carries out the complex
collateral
management functions such as automated optimisation and substitution. 
Improving access to collateral, particularly those balances held
domestically,
is seen as a crucial issue for the financial industry at a time when
regulators
drive demand for optimisation as well as adequate levels of capital and
liquidity. Accordingly, an important and unique feature of Clearstream's
Liquidity Hub Connect is that it mobilises collateral in real time and only
up
to the amount that is required. As a result, it allows Citi’s clients to
use
their entire available inventory intelligently, but without putting their
domestic trading and financing activities at risk. 
Jeffrey Tessler, CEO Clearstream, said: “I am delighted to have Citi as a
partner for the further extension of Clearstream’s comprehensive liquidity
pool. Liquidity Hub Connect will enable Citi to offer its customers the
unique
advantages of our collateral management services, which are widely
acknowledged
as the best in the industry and which continue to develop. We’ve been on
the
fast lane with these services for a number of years now and the open
architecture of the Global Liquidity Hub means our collateral pool
continues to
broaden and deepen, while we continue to deliver collateral management
services
that are exceptionally user-friendly – and live.” 
Sanjiv Sawhney, EMEA Head of Securities and Fund Services at Citi, added:
“We
are delighted to form an alliance with a leading tri-party agent such as
Clearstream to provide our mutual clients with a solution that improves
collateral optimisation across all asset classes and creates significant
efficiency gains. This alliance further demonstrates Citi’s commitment to
developing an open architecture that enables our clients to access
liquidity
pools seamlessly and eliminate collateral fragmentation.” 
This latest evolution of Liquidity Hub Connect is a natural extension to
the
concept of Clearstream’s outsourced, white-labelled Liquidity Hub GO
(Global
Outsourcing) initiative, which is already live with Brazilian CSD Cetip and
is
at various stages of development with four other financial infrastructures
around the world: ASX in Australia, Strate in South Africa, CDS in Canada
and
Iberclear in Spain. 
Clearstream customers also benefit from its unique position within Deutsche 
Börse Group and its integrated business model. Having a central
counterparty
within the same group – Eurex Clearing – enables the companies to deliver
services such as the industry-leading and unique GC Pooling service, a
tri-party repo-style service secured in central bank money. This service is 
being developed further with GC Pooling Select which will enable corporates
to
join GC Pooling as cash providers. 
Media contact 
Nicolas Nonnenmacher, +352 243 36115
nicolas.nonnenmacher@clearstream.com 
About Clearstream 
Clearstream is the leading service provider in liquidity and collateral
management services in Europe with more than 20 years of experience in this 
field. 
As an international central securities depository (ICSD) headquartered in
Luxembourg, Clearstream provides the post-trade infrastructure for the
Eurobond
market and services for securities from 53 domestic markets worldwide.
Clearstream’s customers comprise approximately 2,500 financial institutions
in
more than 110 countries. Its services include the issuance, settlement and
custody of securities, as well as Investment Fund Services and Global
Securities Financing. With around 11 trillion Euros in assets under
custody,
Clearstream is one of the world’s largest settlement and custody firms for
domestic and international securities. 
As a central securities depository (CSD) based in Frankfurt, Clearstream
also
provides the post-trade infrastructure for the German securities industry,
offering access to a growing number of markets in Europe. 
Further information: www.clearstream.com 
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