The State Board of Administration (SBA) of Florida which oversees the $181 billion in assets of the Florida Retirement System (FRS) Pension Plan and other state funds such as the Florida Hurricane Catastrophe Fund, has selected Citi to provide prime services and will now proceed with negotiations with the service provider.
The selection came following an RFP for both prime services and collateral management services, and while SBA said it would prefer respondents to reply to both, they were allowed to just respond to one. However, SBA has tabled the collateral management selection for now.
For the prime services RFP, SBA received responses from Citi, Deutsche Bank, NewEdge, Bank of America Merrill Lynch and Pershing. For Collateral Management Services, SBA received responses were received from State Street, BNY Mellon and Citi.
As per the solicitation for prime services, Citi will tasked with providing services such as futures clearing, OTC derivatives clearing services, FX prime brokerage, and traditional prime brokerage (such as support for short-selling and margin calculation and maintenance, pursuant to a tri-party custody arrangement with SBA’s custodian, BNY Mellon).
Citi will also help SBA comply with regulations such as those under Dodd-Frank, including providing information or education relevant to the SBA. Citi will also help SBA comply with any applicable swap execution facility (SEF) rules.
Citi Wins Prime Services Mandate for Florida's State Pension
The State Board of Administration (SBA) of Florida which oversees the $181 billion in assets of the Florida Retirement System (FRS) Pension Plan and other state funds such as the Florida Hurricane Catastrophe Fund, has selected Citi to provide prime services and will now proceed with negotiations with the service provider.