Citi has established Citi ETF Services, which will service the ETF market in Asia.
Citing Asia Pacific as the fastest-growing region for ETFs, Citi says the new business will provide a single channel for clients looking to launch ETFs within the region.
The business will leverage Citis Global Transaction Services and Global Markets business units and create integrated solutions for ETF issuers, combining market making, seed capital, administration, custody and accounting.
The group will be co-headed by Bob Simon and Jeff McCarthy. Simon is currently program trading head for Citi Global Markets in Hong Kong, while McCarthy is currently global head of ETF products under GTSs Securities and Fund Services in New York. Both will maintain their existing roles and will jointly report to David Russell, head of Securities and Fund Services for Citi in Asia Pacific, and Richard Heyes, head of equities for Pan Asia.
“ETFs are one of the most exciting and fastest-growing financial products globally, says Russell. This trend has firmly arrived in Asia Pacific. The combination of our GTS and Markets services to create an end-to-end offering is what ETF issuers have been looking for, and we are delighted to be the first bank to create such an integrated offering.
Heyes adds: “ETFs are showing impressive growth across many markets in the region. More innovative ETF variations allow investors to readily pursue short or leverage strategies or mimic active management styles. The provision of an end-to-end solution is what can truly differentiate Citi from our competitors.
(CG)