CITI LAUNCHES SUITE OF SERVICES TO ASSIST CLIENTS WITH NEW MONEY MARKET FUND REGULATIONS
New York - 25 May, 2010 – Citi’s Global Transaction Services today announced that its Investor Services business is launching a complete range of services designed specifically to help fund clients comply with new money market rules put forth by the Securities and Exchange Commission. In particular, the new offerings help funds with the implementation and monitoring of liquidity, maturity and credit quality limits as well as reporting and disclosure requirements as required by the new amendments to the Rule 2a-7 regulations.
"Citi’s expanded suite of money market capabilities will enable our clients to respond swiftly and thoroughly to the required regulations without additional resources or infrastructure investments," says Bob Wallace, North America Head of Citi’s Securities and Fund Services. "This demonstrates our continuing commitment to deliver market-leading solutions that satisfy our clients’ reporting and compliance requirements in an ever-changing regulatory environment."
As a key component of the suite of money market services, Citi has developed enhanced monitoring capabilities to address the new limits on weighted average maturity and holdings in illiquid and lower quality securities. Citi’s solution measures daily and weekly liquid asset levels and the weighted average life of a money market portfolio. These new tests are a part of Citi’s well-established, comprehensive compliance monitoring program.
Citi’s capabilities also include support for the new stress test requirement. Citi’s analytical tools test the fund’s ability to maintain a stable net asset value per share based upon certain hypothetical events, such as increases in short-term interest rates, increases in shareholder redemptions, downgrades or defaults of portfolio securities, and widening or narrowing of spreads between yields on an appropriate benchmark. The scenario analyses can also be combined, as suggested by the SEC.
In addition, monthly money market fund disclosure and reporting requirements are supported by the expanded capabilities. Citi will provide data and coordinate with fund advisors for the completion of new Form N-MFP and assist in the monthly web-site postings of portfolio holdings.
Through its Securities and Fund Services business, Citi’s industry-focused experts provide investors worldwide with tailored solutions delivered through proven global platforms that feature modular, open architecture. With over $11.8 trillion of assets under custody and the industry’s largest proprietary network, 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.
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.