Citi Wins Japan Third Party Clearing Mandate
Hong Kong & Tokyo - April 22, 2010 – Citibank Japan Ltd. (CJL)’s Securities Services, a division of Securities and Fund Services of Global Transaction Services, has been appointed by Interactive Brokers Securities Japan, Inc. (IBSJ) to provide Third Party Clearing services in Japan. With immediate effect, CJL will provide Third Party Clearing services for IBSJ’s Japanese equities trades on the Tokyo Stock Exchange (TSE).
By using CJL’s Third Party Clearing platform in Japan, IBSJ will not have to develop and implement any local clearing and settlement presence in Japan. CJL will handle all of IBSJ’s clearing and settlement obligations in this market and will implement a linkage to Japan Securities Depository Center, Inc. (JASDEC), Japan’s central securities depository, as required by local regulations.
The decision to appoint CJL for Third Party Clearing services in Japan follows Interactive Brokers’ 2008 acquisition of Japan’s Moriai Securities, a fully-licensed broker-dealer, which was subsequently renamed IBSJ. After completing the acquisition IBSJ has been heavily focused on its trading strategies, deciding to leverage Citi’s Third Party Clearing experience after close examination of developments in the custody and clearing space in Japan.
By servicing IBSJ’s Japanese equities with its leading Third Party Clearing services, Citi will look to expand the relationship with the client in additional Asia Pacific markets.
In winning this key piece of business, Citi has built on its existing leadership in providing the widest range of on exchange clearing services to brokerages in Asia Pacific. As of April 2010, Citi provides on exchange clearing services including collaboration with exchanges through Account Operator and Third Party Clearing services in Australia, Hong Kong, Malaysia, Singapore and Thailand.
Steve Kelsey, Managing Director, Asia Pacific at Interactive Brokers, said: "IB’s mission is to create technology to provide liquidity on better terms. Compete on price, speed, size, diversity of global products and advanced trading tools. We are looking forward to help establish the stock options market in Japan; to facilitate global firms and traders with access to the Japanese markets; as well as provide our advanced trading technology to local brokers, trading firms, and active traders."
Jeffrey Williams, Managing Director, Regional Head of Intermediaries, Asia Pacific, said: "The size and sophistication of the Japanese broker space has led clients to services that cut costs and provide a differentiating advantage. Backed by our experience, Citi is proud to offer IBSJ Third Party Clearing services in Japan and we look forward to partnering with them on future projects in the region."
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.
Global Transaction Services, a division of Citigroup’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, Citigroup’s Global Transaction Services supports over 65,000 clients. As of the first quarter of 2010, it held on average $319 billion in liability balances and $11.8 trillion in assets under custody.
Citigroup, 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, Citigroup 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.
Interactive Brokers Group, Inc., together with its subsidiaries, is an automated global electronic market maker and broker specializing in routing orders and executing and processing trades in securities, options, futures, foreign exchange instruments, bonds, and funds as a member of more than 80 electronic exchanges and trading venues around the world. The company provides professional traders and investors with electronic access to stocks, options, futures, forex, bonds and funds. Employing proprietary software on electronic exchanges worldwide, Interactive Brokers is continuously integrating its software with a growing number of exchanges and trading venues into one automatically functioning, computerized platform that requires minimal human intervention.