Thursday, 28 September 2023

Citi unveils new automated settlement solution in Hong Kong

5 min read

Citi Securities Services launched a new fully automated solution that further improves Citi’s custodial capability in post-trade instruction and settlement processing.

The proprietary technology involves a module that connects directly to Hong Kong’s central clearing and settlement system (CCASS). The automation enables clients to benefit from more timely and enhanced settlement of their trades in the Hong Kong market depository. The solution improves overall processing capability for users, in addition to providing greater flexibility, that is not constrained by the current fixed schedule of settlement batches in the market.

Citi developed this capability to meet the growing demand from clients for quicker settlement due to a variety of reasons, including efficient collateral management and expeditious trade settlement confirmation for reporting purposes. This enhancement plays a role in improving overall operational resilience thanks to greater settlement flexibility. Citi continues to invest heavily in technology and connectivity to financial market infrastructures (FMIs), and this latest enhancement further complements Citi’s custodial service capabilities.

Aditya Sharma, APAC head of custody at Citi Securities Services said: “In 2020, we were the first sub-custodian in Hong Kong to offer our clients real-time notification of the trade matching status. The latest solution is a continuation of our efforts to provide a complete suite of services that are as close to real-time as possible. Our latest tool opens up a myriad of benefits for our end clients in post-trade activities in Hong Kong.”

Caroline Chan, head for Hong Kong at Citi’s Securities Services said: “We are constantly seeking to improve our client’s experience through the deployment of technology and greater automation. As a leading provider of securities services, it is incumbent upon us to continuously collaborate with the relevant FMIs and other related parties to deliver results that ultimately benefit our clients.”

With approximately $26.2 trillion of assets under custody, administration and trust worldwide, and a leading proprietary network spanning more than 60 markets, Citi Securities Services provides cross-border support for clients with extensive on-the-ground local market expertise, innovative post-trade technologies, customised data solutions, and a wide range of securities services solutions that can be tailored to meet clients’ needs.


Re-disseminated by The Asian Banker

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