The move by Citi is in response to the new ‘Give Up’ regulation initiated by the Turkish Derivatives Exchange (TurkDEX) and it’s clearing house Takasbank. Created with the view to increase market participation and trading volumes, this new regulatory change allows position transfers to custodian banks as third party derivatives clearing agents.
Clients are expected to benefit from operational, financial, risk and cost efficiencies as a result of this new regulation and Citi’s swift action to create this new offering.
Emre Karter, head of global transaction services, Turkey at Citi, said: “Turkey is an increasingly attractive growth opportunity for investors and we are thrilled to be utilizing our local knowledge of the country environment and proactive engagement with regulators and market infrastructures to help bring more investment into this promising economy. This new product launch also demonstrates Citi’s leading edge in the Turkish market to provide our clients with new services and to match their evolving needs.”
Satvinder Singh, head of direct custody & clearing, EMEA at Citi, said: “Responding quickly and efficiently to regulatory changes is crucial for Citi to maintain a market leading position with world class execution, therefore we are delighted to offer third party clearing for exchange traded derivatives and to have expanded our foot print in the EMEA region for this product.”
