Bursa Malaysia names Citi settlement bank for multi-currency securities platform

Source: Citi

Citi Treasury and Solutions, a division of Global Transaction Services, has been appointed by Bursa Malaysia Securities Clearing Sdn. Bhd., a wholly-owned subsidiary of Bursa Malaysia Berhad, to act as foreign currency settlement bank.

In its new capacity, Citi will effect daily cash settlement for various foreign currencies between all clearing participants of Bursa Malaysia's newly launched multi-currency securities platform.

This landmark mandate establishes Citi as Bursa Malaysia's sole foreign currency securities settlement bank. Initially, Citi will serve as settlement bank for five currencies, which will expand to include more currencies as the multi-currency securities platform evolves. In this role, Citi will play a central role in facilitating the cross-border flows and will benefit the exchange with its network reach through relationships with financial institutions across Asia Pacific and the globe.

Under the new alliance, all participants will enter settlement instructions through CitiDirect Online Banking, Citi's award-winning web-based platform. Through CitiDirect the process of completing foreign currency settlements will be executed for all parties within one hour, with immediate availability of funds. Participants will also be required to maintain accounts through Citi Malaysia.

Chief Executive Officer of Bursa Malaysia, Dato' Yusli Mohamed Yusoff said: "The implementation of the multi-currency securities platform is an important milestone in positioning Bursa Malaysia as one of the region's leading centers for fund-raising, trading and investment. It gives us an added avenue to provide a wider range of options for investors. By partnering with Citi as the settlement bank, Bursa Malaysia anticipates the multi-currency securities framework to enable efficient cross-border listings and heightened integration with regional exchanges."

Ivo Distelbrink, Managing Director, Regional Head of Treasury and Trade Solutions, Asia Pacific and Japan, Citi, said: "Bursa Malaysia's selection of Citi demonstrates their confidence not only in our commitment to the region but also our unmatched processing ability. As demonstrated with this mandate, no other bank in the region can confidently assert their leadership in the corporate, financial institution and public sector space like Citi."

Noel Saminathan, Director, Treasury and Trade Solutions Head for Malaysia, Citi, said: "The fact that both Bursa Malaysia and the exchange participants selected Citi as settlement bank speaks volumes about our experience. By winning this important mandate Citi has again solidified its leading position in Malaysia."

Comments: (0)