Citi Securities Services Evolution 2025

14 | Securities Services Evolution 2025 “We plan to upgrade our main systems approximately every 5 years. Over the next few years, we are considering rebuilding the shareholder information management system to further strengthen the personal data protection responding to the increasing number of the shareholders.” Hideki Tomita, Director, Research & Innovation Office, Corporate Strategy Department, JASDEC As part of these transitions, best practice is increasingly pointing to a fundamental restructuring in platformmanagement – as FMIs such as Japan’s CSD JASDECmove away from end- to-end, batch-based processes towards micro- level processes that run in parallel, in real-time. By removing down time and batch processing, FMIs are not only enabling the round-the-clock capabilities that look set to become core in the coming decade, they are looking to remove single- moment transition risk from the industry agenda. But what does thismean for participants? Prolonged waves of change, and never-ending project teams? Or improved functionality and stability that can drive participants’ growth and product innovation? Hopefully both. “Transition is all about minimizing hurdles to our participants. The core objective is to go batchless – and to move to micro-services, where different services are all happening at the same time”. Morena Carvalho, Managing Director, Head of Clearing, B3 Figure 2: FMI Platform Transitions Source: the ValueExchange Expressed as: % of global market capitalization, and ranked by market capitalization, USD billion. United States (DTCC) Hong Kong (HKEX) United Kingdom (Euroclear) Australia (ASX) South Korea (KSD) Brazil (B3) South Africa (JSE/Strate) Thailand (SET) Indonesia (ID Clear/KSEI) Mexico (BMV) Market platform transitions as % of global market capitalisation Top 10 ongoing, major market platform transitions (by market capitalisation, USD billion) $30,436 $4,899 $1,868 $1,488 $1,414 $1,187 $1,056 $569 $523 $414 32% Ongoing 60% No Plans 7% Planned 1% Consultations