Citi has been appointed by Banque de Luxembourg to provide access to the Shanghai-Hong Kong Stock Connect, alongside custody services for A-shares acquired through the link.
The move allows Banque de Luxembourg’s investor clients to utilise Citi’s SPSA+ offering which provides delivery versus payment (DVP) settlement with multiple brokers.
Citi SPSA+ allows investors to appoint up to 20 brokers and avoid the pre-delivery of shares.
The offering also allows receive versus payment (RVP) and delivery versus payment (DVP) settlement, allowing both securities and cash to be settled simultaneously on a T+0 basis.
It also facilitates the post-trade process and helps investors reduce the risk of fail trades and potential buy-in claims from their brokers.
“We are very pleased to have been selected by Banque de Luxembourg to support the launch of this valuable service for their clients,” said Benoit Dethier, European head of Asian flows for Citi Securities Services.
“The implementation of our SPSA+ solution will help position Banque de Luxembourg as one of the first depositary banks capable of offering their clients a solution that addresses key regulatory and risk considerations.”