Citi Introduces New Custody Services for Segregated Collateral Accounts
NEW YORK -- April 08, 2013
Citi has expanded its Citi OpenInvestor suite of investment services to
include Segregated Collateral Custody Accounts that help clients better
mitigate counterparty risk, provide asset safety, and improve collateral
efficiency. This new capability adds to Citi’s existing agency collateral
management service, OpenCollateral. Responding to emerging regulatory
requirements, the new service helps its clients to support new requirements
under Dodd-Frank and European Market Infrastructure Regulation (EMIR) rules.
“The possibility that every OTC relationship may need collateral accounts
under new regulations has driven client demand for more efficient solutions,”
said Chandresh Iyer, Managing Director, Investor Services, Citi. “These
services draw upon our deep understanding of relevant business issues to
streamline the technical and operational challenges of managing all types of
collateral assets across multiple counterparties.”
For tri-party account control arrangements (ACA), Citi will act as an
intermediary between the pledgor and the secured party, holding pledged
collateral in a segregated custody account. Within the terms of each ACA,
Citi’s new solutions allow pledgors to instruct transactions on the collateral
account and secured parties to monitor pledged collateral positions in a
highly automated manner.
Citi’s suite of new collateral custody solutions also offers clients features
*Automated Substitution Control - for rapidly changing collateral
portfolios, this facility enables automated processing of substitution
transactions whilst maintaining collateral values above the agreed initial
*Collateral Monitoring - for complex collateral portfolios, Citi can
provide daily collateral monitoring that incorporates full eligibility
testing, concentration limits and haircut schedules.
*Margin Manager Cash Reinvestment - for Citi clients with US dollar onshore
accounts, Citi offers a program to reinvest cash collateral into money
market funds through a central online portal.
Citi OpenInvestor is the investment services solution for today’s diversified
investor that combines specialized expertise, comprehensive capabilities and
the power of Citi’s global network to help clients meet performance objectives
across asset classes, strategies and geographies. Citi OpenInvestor provides
institutional, alternative and wealth managers with middle-office, fund
services, custody, investing and financing solutions that are focused on their
specific challenges and customized to their individual needs. For more
information, visit openinvestor.transactionservices.citi.com.
Citi Transaction Services, a division of Citi’s Institutional Clients Group,
offers integrated cash management, trade, and securities and fund services to
multinational corporations, financial institutions and public sector
organizations around the world. With a network that spans more than 95
countries, Citi’s Transaction Services supports over 65,000 clients. As of the
fourth quarter of 2012, it held on average $428 billion in liability balances
and over $13.2 trillion in assets under custody.
Citi, the leading global bank, has approximately 200 million customer accounts
and does business in more than 160 countries and jurisdictions. Citi provides
consumers, corporations, governments and institutions with a broad range of
financial products and services, including consumer banking and credit,
corporate and investment banking, securities brokerage, transaction services,
and wealth management.
Additional information may be found at www.citigroup.com | Twitter: @Citi |
YouTube: www.youtube.com/citi | Blog: http://new.citi.com | Facebook:
www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi
Nina Das, +1 212-816-9267
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