Citigroup Israel to Provide Direct Custody & Clearing Services
Citibank N.A approved as member of Tel Aviv Stock Exchange and Clearing House
London and Tel Aviv, 27 September 2006 – Global Transaction Services, a business of Citigroup Corporate and Investment Banking, and the Tel Aviv Stock Exchange (TASE) today announced that Citigroup Israel would provide direct custody and clearing (DCC) services to clients through the TASE Clearing House, making Citigroup the first foreign bank in Israel to offer DCC services to a large international client base. Citibank N.A. was recently approved as a member of TASE and the TASE Clearing House, enabling the bank to offer securities clearing and settlement services in Israel.
Staffed by fluent Hebrew and English speaking personnel familiar with the local market, Citigroup Israel will offer the same high quality standard of DCC service, technology and support that Citigroup provides globally, a service that is consistently ranked highly in Global Custodian’s Agent Bank and Global Investor’s annual surveys. Today’s announcement marks Citigroup’s third new DCC office since November 2005, with previous openings in Slovakia and Vietnam, expanding Citigroup’s proprietary DCC network to 47 markets, the largest in the world.
Andrew Gelb, Global Head of Direct Custody and Clearing for Citigroup’s Global Transaction Services business said, “We are extremely excited to provide clients with a wide range of DCC services on-the-ground in Israel. We are in a unique position to leverage our global network and experience in growth markets worldwide to the benefit of our clients and the market.”
Ralph Shaaya, Citigroup’s Country Officer for Israel, added, “This once again affirms our commitment to the Israeli marketplace through the introduction of a new value-added service to the international institutions investing in Israel.”
Ester Levanon, CEO of TASE, said, “The joining of Citigroup as a member of TASE’s Clearing House is a continuation of the trend of extending the activity of international entities in the Israeli capital market. This is an important expression of trust of a leading financial group, that will strengthen the Stock Exchange and the Israeli market.”
TASE and Citigroup have been working together for several years. In 2001 the TASE Clearing House developed the Galaxy System in collaboration with Citigroup. Galaxy allows members to effectively manage, reconcile and standardize clearing and settlement processes and minimize risk. The system integrates between the high professional standard of the Clearing House in Israel and the high standard financial credibility of Citigroup in the world. Galaxy services currently cater to the US market and will soon be launched in Europe and other global markets. The system provides services to four of the leading banks in Israel.
Citigroup (NYSE: C), the leading global financial services company has some 200 million customer accounts and does business in more than 100 countries, providing 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, and wealth management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney and Banamex. Additional information may be found at www.citigroup.com
Citigroup Corporate and Investment Banking
Our 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. Core business lines under Citigroup Corporate and Investment Banking include Global Capital Markets, Global Banking and Global Transaction Services.