Citi revamps collateral custody accounts
09 April 2013 New York
Image: Shutterstock
Citi has expanded its Citi OpenInvestor suite of investment services to include segregated collateral custody accounts. The new accounts are hoped to help clients better mitigate counterparty risk, provide asset safety, and improve collateral efficiency, and adds to Citi鈥檚 existing agency collateral management service, OpenCollateral.
The new service also helps clients to support new requirements under Dodd-Frank and European Market Infrastructure Regulation (EMIR) rules.
鈥淭he possibility that every OTC relationship may need collateral accounts under new regulations has driven client demand for more efficient solutions,鈥� said Chandresh Iyer, managing director of investor services at Citi. 鈥淭hese services draw upon our deep understanding of relevant business issues to streamline the technical and operational challenges of managing all types of collateral assets across multiple counterparties.鈥�
For tri-party account control arrangements (ACA), Citi will act as an intermediary between the pledgor and the secured party, holding pledged collateral in a segregated custody account. Within the terms of each ACA, Citi鈥檚 new solutions allow pledgors to instruct transactions on the collateral account and secured parties to monitor pledged collateral positions in a highly automated manner.
Citi鈥檚 suite of new collateral custody solutions also offers clients features for automated substitution control for rapidly changing collateral portfolios, collateral monitoring, and margin manager cash reinvestment.
The new service also helps clients to support new requirements under Dodd-Frank and European Market Infrastructure Regulation (EMIR) rules.
鈥淭he possibility that every OTC relationship may need collateral accounts under new regulations has driven client demand for more efficient solutions,鈥� said Chandresh Iyer, managing director of investor services at Citi. 鈥淭hese services draw upon our deep understanding of relevant business issues to streamline the technical and operational challenges of managing all types of collateral assets across multiple counterparties.鈥�
For tri-party account control arrangements (ACA), Citi will act as an intermediary between the pledgor and the secured party, holding pledged collateral in a segregated custody account. Within the terms of each ACA, Citi鈥檚 new solutions allow pledgors to instruct transactions on the collateral account and secured parties to monitor pledged collateral positions in a highly automated manner.
Citi鈥檚 suite of new collateral custody solutions also offers clients features for automated substitution control for rapidly changing collateral portfolios, collateral monitoring, and margin manager cash reinvestment.
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