CITI ADMITTED AS SGX BANK CLEARING MEMBER FOR SECURITIES
Singapore - February 10, 2010 – Citi’s Securities and Fund Services, a division of Global Transaction Services, has been admitted as a Bank Clearing Member for securities by Singapore Exchanges Limited (SGX). In receiving membership approval, Citi’s Securities and Fund Services can now offer SGX Trading Members an array of value-added clearing services, including Third Party Clearing enhancements.
Through the innovative Third Party Clearing product, brokerage clients can establish streamlined infrastructural linkages to SGX and benefit from experienced servicing of all clearing and settlement functions. By partnering with Citi, brokerage clients are provided with the flexibility of outsourcing critical post-trade clearing and settlement functions, allowing them to focus on their key competencies in trading and execution. Benefits to brokerage clients will also include reductions in clearing membership costs and infrastructure maintenance.
Citi’s recently approved Bank Clearing Member status and subsequent introduction of Third Party Clearing services on SGX will initially be targeted to Singapore-based brokerages, which comprise of both local and global firms. As an approved Bank Clearing Member of SGX, Citi’s Third Party Clearing solution will also benefit brokerages that do not have the scale to invest in back-office clearing and post-trade systems when remote trading membership is approved by SGX in Singapore.
The significance of Citi’s approval is best represented by the fact that Citi is the first new Bank Clearing Member for securities the SGX to not directly convert from General Clearing Membership status. Additionally, by offering this innovative solution in Singapore, Citi has built on its existing leadership in providing on exchange clearing to brokerages in Asia Pacific, which also includes Account Operator and Third Party Clearing services in Australia, Hong Kong, Japan, Malaysia, Singapore and Thailand.
Gan Seow Ann, Senior Vice President and Head of Markets at SGX, said: "SGX is pleased to welcome Citibank N.A. as a Securities Clearing Member. With more Bank Clearing Members serving the securities market, market participants can expect wider choices for their clearing and settlement needs. This will enhance the diversity of our market participants, help grow our distribution and customer base, and build a more vibrant market,"
David Russell, Managing Director, Regional Head of Securities and Fund Services, Asia Pacific, said: "In attaining Bank Clearing Membership and providing our clients with Third Party Clearing, Citi has clearly shown its unwavering commitment to the evolving needs of Singapore's broker community through our unparalleled range of solutions. We look forward to partnering with SGX on this groundbreaking project and on future clearing initiatives that create greater market efficiencies and drive volumes on SGX."
Through its proprietary network in 57 markets, Citi’s Securities and Fund Services business provides the clearing and settlement services required by broker dealers, global custodians and industry infrastructures, to support trading and investing activities around the world. Clients can leverage Citi’s local market expertise and global reach to extract value across the entire investment value chain.
About Singapore Exchange Limited
Singapore Exchange Limited (SGX) is Asia-Pacific's first demutualised and integrated securities and derivatives exchange. SGX was inaugurated on 1 December 1999, following the merger of two established and well-respected financial institutions - the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX). On 23 November 2000, SGX became the first exchange in Asia-Pacific to be listed via a public offer and a private placement. Listed on our own bourse, the SGX stock is a component of benchmark indices such as the MSCI Singapore Free Index and the Straits Times Index. Home to Singapore's leading listed companies, SGX is also at the forefront of exchanges globally in attracting international issuers and is rapidly emerging as Asia's offshore risk management centre for international derivatives.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through its two operating units, Citicorp and Citi Holdings, 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 or www.citi.com.
About Global Transaction Services
Global 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 100 countries, Citi's Global Transaction Services supports over 65,000 clients. As of the fourth quarter of 2009, it held on average $335 billion in liability balances and $12.1 trillion in assets under custody.