Citi Introduces New Custody Services for Segregated Collateral Accounts
New York, NY - April 8, 2013 – Citi has expanded its Citi OpenInvestor suite of investment services to include Segregated Collateral Custody Accounts that help clients better mitigate counterparty risk, provide asset safety, and improve collateral efficiency. This new capability adds to Citi’s existing agency collateral management service, OpenCollateral. Responding to emerging regulatory requirements, the new service helps its clients to support new requirements under Dodd-Frank and European Market Infrastructure Regulation (EMIR) rules.
“The possibility that every OTC relationship may need collateral accounts under new regulations has driven client demand for more efficient solutions,” said Chandresh Iyer, Managing Director, Investor Services, Citi. “These services draw upon our deep understanding of relevant business issues to streamline the technical and operational challenges of managing all types of collateral assets across multiple counterparties.”
For tri-party account control arrangements (ACA), Citi will act as an intermediary between the pledgor and the secured party, holding pledged collateral in a segregated custody account. Within the terms of each ACA, Citi’s new solutions allow pledgors to instruct transactions on the collateral account and secured parties to monitor pledged collateral positions in a highly automated manner.
Citi’s suite of new collateral custody solutions also offers clients features for:
- Automated Substitution Control - for rapidly changing collateral portfolios, this facility enables automated processing of substitution transactions whilst maintaining collateral values above the agreed initial margin level.
- Collateral Monitoring - for complex collateral portfolios, Citi can provide daily collateral monitoring that incorporates full eligibility testing, concentration limits and haircut schedules.
- Margin Manager Cash Reinvestment - for Citi clients with US dollar onshore accounts, Citi offers a program to reinvest cash collateral into money market funds through a central online portal.
Citi OpenInvestor is the investment services solution for today’s diversified investor that combines specialized expertise, comprehensive capabilities and the power of Citi’s global network to help clients meet performance objectives across asset classes, strategies and geographies. Citi OpenInvestor provides institutional, alternative and wealth managers with middle-office, fund services, custody, investing and financing solutions that are focused on their specific challenges and customized to their individual needs. For more information, visit openinvestor.transactionservices.citi.com.
About Citi Transaction Services
Citi Transaction Services, a division of Citi’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 95 countries, Citi’s Transaction Services supports over 65,000 clients. In 2012, Citi held on average $428 billion in liability balances and $13.2 trillion in assets under custody.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. 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.
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