Published On: Thu, Dec 8th, 2011

Aviva Investors Appoints Citi To Provide Collateral Management and OTC Derivatives Services

Citi announced December 8 that it has been appointed by Aviva Investors Asia Pte Ltd to support its OTC derivatives middle office requirements including collateral management in Asia. The service will include trade capture, confirmation, affirmation, life cycle support, daily valuations, margin calculations, dispute resolution, settlement, custody as well as accounting. This mandate extends the range of transaction services that Citi provides Aviva Investors, which currently include custody, securities
finance, middle office and fund administration.

“Citi’s robust technology platform and comprehensive support will enable us to further enhance the efficiency and risk management of our operational cycle,” said Erich Gerth, Chief Executive Asia Pacific & Global Business Development at Aviva Investors. “This will strengthen our operations at a time of evolving market requirements for the benefit of our clients and company.”

Since the 2008 financial crisis, there has been a rigorous review of credit risk management practices across the industry. A renewed interest in the implementation of Credit Support Annex (CSA), which dictates collateral terms and conditions, and the collateralization of trading relationships, have resulted in market participants across the region looking for collateral expertise to strengthen their operational capabilities. In a cost conscious environment, financial institutions in the region, notably on the buy side, are undergoing a rigorous review of costs and processes, and consequently have chosen to strategically
outsource specialized services such as collateral management and OTC derivatives services to a specialist provider. This mandate demonstrates Citi’s commitment to supporting this client demand and the securities and fund services business across Asia Pacific.

Citi’s complete platform for OTC derivatives combines derivatives middle office services and daily valuations with Citi’s OpenCollateral service that consolidates, streamlines and optimizes collateral management.

David Russell, Regional Head, Asia Pacific, Securities and Fund Services, Citi, said, “Citi’s deep industry knowledge, coupled with an extensive franchise across 100 markets globally, uniquely positions us to address the specific challenges facing investors. Since the launch of OpenCollateral in Asia Pacific earlier this year, Citi’s collateral management services business has been awarded several key mandates, establishing Citi as a leading provider in the region.”

In 2011, Citi continued to strengthen its OTC derivatives and collateral management services teams in Asia Pacific. Both Karim Chabane as Regional Product Manager and Sam Ahmed as Regional Sales Head joined this year reporting to Pierre Mengal, Regional Head of Collateral Services for Citi in Asia Pacific. Wout Kalis, Regional Head of Alternative Investment services has been driving the roll out of Citi’s OTC Derivatives Services in Asia Pacific.

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