Citi is launching a tri-party collateral management solution in conjunction with tri-party agents - Euroclear and ClearStream - that will allow clients to consolidate their equity and fixed income holdings into a single collateral pool by combining assets held at Citi as Custodian with those held at tri-party agents.

Through the new solution, Citi will mobilize securities held in custody for mutual clients and make them available for use as collateral to tri-party agents. Citi continues to hold the assets as custodian, while the tri-party agent manages the collateralization process directly from client trading accounts. This new solution provides a seamless, real-time mechanism to enable clients to optimise collateral across multiple agents while reducing operational risk and fragmentation costs.

This service improves collateral optimization across all asset classes and markets by leveraging the breadth of Citi's direct custody and clearing network that spans over 60 markets. Citi's OpenCollateralSM, open architecture collateral management solutions help clients to optimise the use of collateral and streamline the administrative and operational challenges of managing all types of collateral assets across multiple counter-parties.