European Asset Manager Outsources Collateral Management to Citi

Citi’s OpenCollateral will provide collateral management and middle office services to one of Europe’s leading asset managers, allowing it to centrally clear OTC derivatives for the first time before clearing regulations come into effect.

Dodd-Frank requires all U.S.-based entities to clear certain types of OTC derivatives via a central counterparty (CCP). Similar requirements for OTC derivatives, EMIR, are expected to apply to all European-based financial institutions in 2014.

Citi’s OpenCollateral open architecture collateral management solutions help clients to optimize the use of collateral and streamline the administrative and operational challenges of managing all types of collateral assets across multiple counterparties. The services Citi delivered to this client support the complex new
margining processes required for OTC clearing.

Sanjiv Sawhney, EMEA Head of Securities and Fund Services at Citi, said: “Our ability to ensure a key European client could begin clearing their OTC trades centrally at this stage in the Dodd-Frank regulatory timeline shows how committed we are to manage their obligations efficiently and presciently.”