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’s 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.
“The possibility that every OTC relationship may need collateral accounts under new regulations has driven client demand for more efficient solutions,” said Chandresh Iyer, managing director of investor services at Citi. “These 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.”
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’s 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’s 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.
.jpg)