Citi Securities Services Evolution 2025

36 | Securities Services Evolution 2025 Asset servicing: an FMI priority With all of this transformation, the hope is that these new technologies can also begin to deliver real benefits in corporate actions and proxy voting, given that 13%of respondents inNorth America consider asset servicing automation to be a significant market change. As our previous reports have highlighted, the significant efforts by buy-side firms to drive automation in corporate actions and the renewed focus by bothUS and Canadian CSDs in this area is cause for optimism. The DTCC’s ongoing Corporate Actions Transformation is accelerating in 2025- 2026 and the CDS’s corporate actions group is due to publish its position paper inQ4 2025. In addition, both CSDs have continued to support SWIFT and Chainlink’s Project CALM 41 (“Corporate Actions Language Model”, using GenAI and blockchain) to explore new efficiencies in event validation. Central Clearing: Not (yet) on the post-trade radar? What isn’t getting attention? Despite its significance and impact, the transition tomandatory clearing of US Treasuries in 2026 appears to be escaping the attention of post trade teams in 2025. The SEC’s December 2023 rule to centrally clear most US Treasury (UST) cash and repo trades is arguably the most significant post-trade regulatory change since US T+1. A measure to bolster growth, market efficiency and UST market stability, central clearing also directly addresses vulnerabilities exposed in past crises (e.g. March 2020), mitigating risk through netting and mandatory margin, including crucial distinct “house” and “customer” accounts. Despite the phased deadlines 42 (FICC 43 by Sept 2025, cash trades by end-2026, repo by mid- 2027), the significant operational, technological, and legal adjustments requiredmean timings are tight. The current “under the radar” status, perhaps due to phased implementation and a perceived concentrated impact on large banks, is misleading; its systemic importance ripples across the entire financial ecosystem. All institutional investors will largely clear indirectly, facing new operating models and potential cost shifts. Hedge funds are directly subject to repo clearing requirements, bringing new margin demands. Even smaller banks and broker- dealers will need to adjust their market access models. This broad impact, similar to the initial underestimation of US T+1, demands immediate education and engagement to ensure the industry as a whole is prepared. Key Dates 2025 2026 2027 2028+ DTCC Platform Modernization 44 Q4: Client Interface Connectivity Testing Q1 Testing Q4: CNS goes live Q4: Current connectivity will be decommissioned Q3: Current transaction input/output formats will be decommissioned: UST Clearing BySept: FICC Byyear end: cashtrades By end H1: repo Digital Assets Jan: SECCrypto Task Force 45 created July: GENIUS Act 46 enacted Asset Servicing DTCCCorporateActions transformations