Citi's securities and fund services, a division of global transaction services, has been appointed as a bank clearing member for securities by Singapore Exchanges Limited (SGX). The membership enables the Citi's securities and fund services to offer SGX trading members an array of value-added clearing services, including third party clearing enhancements.

Through the third party clearing product, brokerage clients can establish streamlined infrastructural linkages to SGX and benefit from experienced servicing of all clearing and settlement functions.

By partnering with Citi, brokerage clients are provided with the flexibility of outsourcing critical post-trade clearing and settlement functions, allowing them to focus on their key competencies in trading and execution. Benefits to brokerage clients will also include reductions in clearing membership costs and infrastructure maintenance.

Citi’s third party clearing solution will also benefit brokerages that do not have the scale to invest in back-office clearing and post-trade systems when remote trading membership is approved by SGX in Singapore.

Gan Seow Ann, senior executive vice president and head of markets at SGX, said: “SGX is pleased to welcome Citibank as a securities clearing member. With more bank clearing members serving the securities market, market participants can expect wider choices for their clearing and settlement needs. This will enhance the diversity of our market participants, help grow our distribution and customer base, and build a more vibrant market.”

David Russell, managing director, regional head of securities and fund services Asia Pacific at Cit, said: “We look forward to partnering with SGX on this groundbreaking project and on future clearing initiatives that create greater market efficiencies and drive volumes on SGX.”