Citi to provide fund administration and depositary services while Vistra worked on the regulated fund structure setup in Luxembourg.
The hire comes as custodians and buy-side firms rush to set up collateral management arrangements before the next phase of the uncleared margin rules.
With the Baton network, Citi will automate its collateral management as it becomes first FCM to connect to ICE Clear Europe.
Hire follows deal between Nordea and Citi to recommend the Nordic bank’s existing sub-custody clients to appoint the US bank as their replacement provider after exiting the space.
The US bank becomes one of the first international tenants at the BIFC, a landmark building that anchors Busan’s rapidly developing financial district.
Citi will be able to begin offering local custody services to China’s $19 trillion asset management market, which has been a long-term target for global custodians.
Sales teams across prime finance and the futures, clearing and FX prime brokerage will be merged alongside the new appointment.
Citi will provide transfer agency for the asset manager's first Northbound fund under the Hong Kong-China Mutual Recognition of Funds (MRF) scheme.
HKEX Synapse, unveiled in November last year, will enable asset managers, custody and clearing banks to handle the growing volume of trades though Stock Connect into China.