Citigroup has launched a securities clearing service in Hong Kong. The bank is offering clearing and settlement services and to act as ‘account operator’ for firms dealing on the Hong Kong stock exchange.
Citigroup says it has already signed up one client and further clients are expected to be added in the coming year.
Citigroup is the first custodian bank to act as a settlement agent in Hong Kong for third parties after changes in legislation in November 2004 allowed exchange members to outsource clearing and settlement activities.
In addition to clearing and settlement, Citigroup is offering cash projections, stamp duty payment and reporting, corporate actions and income collection.
“Citigroup’s securities exchange clearing services will further improve the accessibility of the Hong Kong market to firms by reducing their infrastructure requirements and maximizing the efficiency of their resources – in terms of both technology and people,” says Michael Drumgoole, Regional Product Manager for Custody and Clearing at Citigroup’s Global Transaction Services.
Globally, Citigroup has been providing securities exchange clearing services since 1997, but the bank is stepping up its presence in Asia. It launched a service in Australia, Malaysia and Singapore last year.
Fanny Wong, Director and Securities Country Manager, Hong Kong, says the new service is a triumph for Citigroup’s abilities in “market advocacy and product innovation.”
In 2005, Citigroup Hong Kong earned “Top Rated” status in the Global Custodian Major Markets Agent Bank Survey for a sixth year in succession.