Citi has announced that its Citi Treasury and Solutions, a division of Global Transaction Services, has been appointed by Bursa Malaysia Securities Clearing, to act as foreign currency settlement bank.
Reportedly, 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. Initially, Citi will serve as settlement bank for five currencies, which will expand to include more currencies as the multi-currency securities platform evolves.
Under the new alliance, all participants will enter settlement instructions through CitiDirect Online banking. 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.
Dato’ Yusli Mohamed Yusoff, CEO of Bursa Malaysia, said: “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.
Bursa Malaysia Securities Clearing is a wholly-owned subsidiary of Bursa Malaysia Berhad, an exchange holding company.
