Citi Announces Another Execution to Custody Product Client Win

Citi's Integrated trade through settlement communications product names second client, Erste Bank Group, this week at the SIBOS conference.

Erste Bank Group, a Vienna-based bank with 214 billion Euros in assets, has selected Citi Global Transaction Services' Execution to Custody service, which provides a single counterparty to trade, settle and provide custody in all major execution markets worldwide. This is the second announcement that a European bank is using Execution to Custody. On Monday, Luxembourg-based Banque et Caisse D'Epargne de L'Etat (BCEE) announced that it has also selected the service.

Citi Execution to Custody service launched in the EMEA region in June. Through the linking of Citi's capital markets and securities capabilities, Citi will provide Erste with a service that removes operational inefficiencies and risks that come from dealing with multiple trade transaction providers. In addition to global equity market executions, Execution to Custody also gives Erste algorithms, DMA, smart routing trade processing/aggregation, global and domestic market clearing, settlement, asset servicing, regulatory and position reporting, statements/billing and client support.

"Erste's choice of Citi's custody solution will bring optimal cooperation between Erste Group Bank ... and Citi with its global footprint and its brokerage and custodial capabilities in the U.S.," says Alexander Schleifer, head of custody and network management at Erste, in a statement.

"The markets are increasingly fragmented and many broker dealer's capabilities are fragmented as well," says Curtis Brill, managing director, electronic markets, Citi Global Transaction Services, during an interview at the SIBOS payments conference in Vienna. "The cost is going up for communication, while there is huge pressure to reduce fees [commissions charged to clients]. Execution to Custody helps unify the process and reduce costs." Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio