Citigroup Appointed Securities Clearing Agent by CLSA in Malaysia
13 October 2005 — Citigroup has been appointed Securities Clearing Agent by CLSA in Malaysia. CLSA is the first foreign broker in Malaysia to appoint a third party to clear and settle securities transactions executed directly on Bursa Malaysia Securities, the Malaysian stock exchange.
Under the mandate, Citigroup will provide back office securities clearing services for CLSA’s new brokerage business in Malaysia.
CLSA is among the first foreign brokers to receive approval from local authorities including the Securities Commission in Malaysia to become direct trading members of Bursa Malaysia Securities. Further to this approval, and with the endorsement of the Securities Commission, CLSA has appointed Citigroup as their ‘account operator’ to handle certain operational activities relating to trades executed by CLSA on the stock exchange, including securities clearing and settlement.
“We are delighted with CLSA’s appointment of Citigroup as their securities clearing agent in Malaysia,” said Sanjeev Nanavati, Country Head, Corporate and Investment Banking, Citigroup Malaysia. “Citigroup’s securities clearing agent services will improve the accessibility of the market to firms by reducing their infrastructure requirements and maximizing the efficiency of their resources – in terms of both technology and people,” he said.
“Outsourcing the clearing and settlement to Citigroup enables us to speed up time-to-market, reduce fixed costs and concentrate on our core business in research broking,” said David Ilett, Group Head of Trading Operations at CLSA.
Securities Clearing Agent services, and its broader product offering, Third Party Clearing, are of great interest to securities firms at a time when cost management is an industry-wide priority. In June 2005, Citigroup launched its third party clearing services in Australia, targeted at broker dealers who wish to trade securities listed on the Australian Stock Exchange from offshore locations.
Citigroup Malaysia is one of the largest foreign custodian banks in Malaysia. Citigroup was named “Top Rated” custodian by institutional investors in Global Custodian’s magazine Agent Bank Survey, six years in a row (1999 to 2004), and received top score among all custodian banks in 2004.
About Citigroup Corporate and Investment
Citigroup Corporate and Investment Banking group achieves the extraordinary for our clients around the world. No financial institution is more committed to understanding and advancing the goals of its clients – our diverse and talented staff in some 100 countries advises companies, governments, and institutional investors on the best way to realize their strategic objectives. We create solutions for and provide the broadest possible capital and market access to thousands of issuer and investor clients, and no institution better executes the increasingly complex payment and cash management solutions required in today's global economy. Additional information can be found at: www.citigroupgcib.com
About CLSA Asia-Pacific Markets
CLSA is an award-winning leading brokerage, capital markets and private equity group in the Asia-Pacific Markets. Founded in 1986 and headquartered in Hong Kong, CLSA is a unit of France's biggest bank, Credit Agricole, which merged in 2003 with Credit Lyonnais, to form the 2nd largest bank in the world by Tier One capital and the 4th largest bank in the world by assets. CLSA is 35% owned by CLSA management and staff.
CLSA has over 800 dedicated professionals spread across all Asian and international financial centres. Recognised as one of the top research, sales and execution houses in Asia, CLSA is known for its innovative and independent research. In 2003, CLSA expanded its brand to Japan, offering Japanese equity research and sales services to international investors. Additional information can be found at www.clsa.com