Vikam Pandit, the Citigroup CEO, has recently stated that the Global Transaction Services (GTS) will make up a third of Citis global revenues in the next three to four years.
GTS currently accounts for 18% of revenues, but with the launch of Citis third party clearing services on Singapore Exchange Limited (SGX), its global revenues look set to expand.
Satvinder Singh, MD and head of direct custody and clearing in EMEA was is suitably optimistic, however he highlighted a number of potential problems that lie ahead. There will be a blurring of perspectives by 2013 due to regulation he said. While the trading side has enjoyed the benefits of MiFID and CCPs, from a custodian perspective, there has been fragmentation in the market. The new question is how do you reduce complexity?”
It is unsurprising therefore to find Open Architecture a buzz phase at the Citi stand this year. Much of this has to do with clients wishing increased transparency. No-longer content with bundled packages, clients want to know how much each service costs, and tailor the packages to their needs.
Singh is also excited about transferring third party clearing and MTF services across to Asia. Asia does not have T2S, a unifying currency or regulator, but rather varying domestic drives. Citi sees itself as the player who can help bridge the domestic fragmentation of Asia.