Citi Launches Securities Lending In Russia

Citi has extended its securities lending services to Russia through its OpenLend platform.

Alexei Fedotov, Securities and Fund Services Head, Russia & CIS ZAO Citibank, Moscow describes the extension as an alternative to repo deals, which have been a popular type of operation in Russia for many years.

Citi joins HSBC as another lender in the local market. Citi also clears trades in India and is active in Malaysia.

Commenting on the extension of Citi’s service to Russia, Pat Avitabile, managing director, global head of product strategy and development, Citi Transaction Services says: “I certainly think the trend is everyone is more open to it. I think the reason for that is prior to the crisis, I think some beneficial owners may have been able to look at their collateral as a way to earn additional income. And there’s been a shift since the crisis, and that shift is to be somewhat more conservative. There’s been a greater focus on intrinsic value, which there should be. Now, the question in front of beneficial owners is: How do I add value to my fund? How do I add returns to my portfolios? And clearly one way is to participate in the emerging market space.”

Available through Citi OpenInvestor, an investment services solution, OpenLend is now available in 74 markets globally and delivers an open-architecture securities lending solution that leverages the bank’s global presence.