Citigroup Global Transaction Services has confirmed that it is to provide direct custody and clearing (DCC) services to clients through the Tel Aviv Stock Exchange (TASE) Clearing House.
This makes Citigroup the first foreign bank in Israel to offer clearing and custody services to international clients in a market where the indigenous providers have rarely shone.
Citibank N.A. was recently approved as a member of TASE and the TASE Clearing House, enabling the bank to offer securities clearing and settlement services in Israel.
The operation will be staffed by fluent Hebrew and English speaking personnel familiar with the local market, says Citigroup.
Israel is Citigroup’s third new DCC office to open since November 2005, with previous openings in Slovakia and Vietnam. Net of some recent closures in Latin America – where rivals HSBC are expanding – Citigroup’s proprietary network now extends to 47 markets, making it the largest in the world.
“We are extremely excited to provide clients with a wide range of DCC services on-the-ground in Israel,” says Andrew Gelb, Global Head of Direct Custody and Clearing for Citigroup’s Global Transaction Services business. “We are in a unique position to leverage our global network and experience in growth markets worldwide to the benefit of our clients and the market.”
Ralph Shaaya, Citigroup’s Country Officer for Israel, sais the decision affirmed the commitment of the bak to the Israeli market.
Ester Levanon, CEO of TASE, adds that “the joining of Citigroup as a member of TASE’s Clearing House is a continuation of the trend of extending the activity of international entities in the Israeli capital market. This is an important expression of trust of a leading financial group, that will strengthen the Stock Exchange and the Israeli market.”
TASE and Citigroup have been working together for several years. In 2001 the TASE Clearing House developed the Galaxy System in collaboration with Citigroup. Galaxy aims to allow stock exchange members to manage, reconcile and standardize clearing and settlement processes and reduce risk by combining high standards in clearing with the large balance sheet of Citigroup. Galaxy services currently cater to the US market only, but will soon be launched in Europe and other global markets. The system also provides services to four of the leading banks in Israel.