• Published on 8 August 2024
• 554 Views
• Print

Citi boosts TDCC's centralised custody platform

Citi Securities Services has been selected to provide global custody services for Taiwan Depository & Clearing Corporation's (TDCC) new centralised custody platform.

TDCC’s centralised custody platform is being developed in accordance with an amendment by the Financial Supervisory Commission to improve asset safety for local investors holding overseas investments via local brokers. In Taiwan, sub-brokerage is one of the fastest-growing areas in the local financial market. Local brokers will hold clients’ overseas investments with the TDCC on the back of the new centralised custody platform.

According to the Taiwan Securities Association, from January to May 2024, local sub-brokerage transactions totalled TWD 2.9 trillion ($89 billion), a year-on-year increase of more than 60% as retail investors’ interest in overseas investments continues to increase. Citi will support investment flows on TDCC’s platform by leveraging its global custody network of over 100 markets, including its leading proprietary sub-custody network of 63 markets which covers 95% of the world’s market capitalisation.

Hsiao-Chi Wang, head of Citi Taiwan Securities Services, said: “Citi is committed to supporting the continuing liberalisation and internationalisation of Taiwan’s capital markets and we are honoured to partner with the TDCC to establish the new centralised custody platform. With the strength of our network and local expertise, Citi is uniquely positioned to support clients across the entire investment lifecycle.”

Citi’s role in support of the TDCC’s centralised custody platform draws from its experience in supporting financial market infrastructures worldwide including in Asia to enhance local securities services ecosystems for investors and facilitate connectivity to global flows.

David Brown, head of securities services for Japan, Asia North and Australia, Citi, said: “We are pleased to be supporting the TDCC on this significant initiative as we support Financial Market Infrastructures in the region and beyond to facilitate investment flows and the ongoing development of local securities markets. By running the largest securities services network worldwide, we continue to deliver Citi’s global capabilities coupled with market-specific insights to our clients.”

Bing-huei Lin, chairman of TDCC, said: “We have been providing cross-border custody services for foreign securities since 2015, with nearly TWD 5 trillion or approximately $153 billion in foreign securities under custody at present. Our goal is to ensure asset safety for local investors and create a standardised and automated operating environment in collaboration with Citi and other global custodians.”

In Taiwan, Citi’s multiple award-winning franchise has the largest market share in sub-custody with expertise in a full range of services including securities settlements, asset servicing, fund services and proxy services, among others.

With a focus on enabling the investment process and approximately $24 trillion in assets under custody and administration, Citi Securities Services goes beyond borders to holistically support securities activity wherever clients need us.

Our integrated suite of services, across custody, execution, fund and issuer services, and advanced data capabilities, connects and serves clients across the entire trade and investment ecosystem. With a leading proprietary network and universal banking capabilities, we combine the right fit of solutions to help grow our clients’ businesses into the future.

Re-disseminated by The Asian Banker