Citi has launched custody clearing services in Bahrain via the Bahrain Stock Exchange, four months after the bank signed a depository agreement with the BSE to provide custody of BSE-listed securities to local, regional and international institutional investors.
Citi will provide account management, settlement of securities, handling post-trade issues, the collection and payment of dividends and interest, and the processing of corporate action activities in the market.
The move follows the 2008 announcement by Citis Securities and Fund Services division to extend its fund servicing domiciles with the addition of Bahrain Regulated Funds.
“The Kingdom of Bahrain continues to be a dynamic and exciting economy and one that we remain fully committed to,” said Mazin Manna, chief executive of Citi Bahrain. “The launch of our direct custody and clearing services in Bahrain is in line with our objective to invest in the development of the region’s top financial markets. This is also another important achievement in our strategy to embed Citis Securities and Fund Services capabilities within the region.
The competition between the regions major custodians has increased in 2010. In February Standard Chartered announced the launch of custody and clearing services from Bahrain and Oman. In April HSBC Securities Services launched a new global custody operating model in the Middle East targeted at regional clients, aiming to improve operating infrastructure by improving turnaround times, better cut-off times for trade, corporate action and payment instructions.
Citi currently offers full scale corporate banking services across ten Arab countries including Egypt, UAE, Lebanon, Jordan, Tunisia, Morocco, Algeria, Bahrain, Qatar and Kuwait as well as Pakistan. Its consumer banking services cover UAE, Egypt, Bahrain and Pakistan.