Citi is launching a tri-party collateral management solution in conjunction with tri-party agents that allows clients to consolidate their equity and fixed income holdings into a single collateral pool by combining assets held at Citi as Custodian with those held at tri-party agents.
Through the new solution, Citi will mobilize securities held in custody for mutual clients and make them available for use as collateral to tri-party agents. Citi continues to hold the assets as custodian, while the tri-party agent manages the collateralization process directly from client trading accounts. This new solution provides a highly efficient, seamless, real-time mechanism to enable clients to optimize collateral across multiple agents while reducing operational risk and fragmentation costs.
“Against the backdrop of increased risks related to counterparty exposure and the impending global collateral squeeze, this new offering further demonstrates Citi’s commitment to developing open architecture solutions which allow our clients to more efficiently access liquidity pools,“ said Sanjiv Sawhney, EMEA Head of Securities and Fund Services, Citi. “This service improves collateral optimization across all asset classes and markets by leveraging the breadth of Citi’s direct custody and clearing network that spans over 60 markets. We look forward to working with our partners and expanding this solution.”
Citi’s OpenCollateralsm, open architecture collateral management solutions help clients to optimize the use of collateral and streamline the administrative and operational challenges of managing all types of collateral assets across multiple counterparties.
Through its Securities and Fund Services business, Citi’s industry-focused experts provide its clients worldwide with tailored solutions delivered through proven global platforms that feature modular, open architecture. With $12.8 trillion of assets under custody and the industry’s largest proprietary network, clients can leverage Citi’s local market expertise and global reach to extract value across the entire investment value chain.
