Citi partners with KSD
08 October 2018 Seoul
Image: Shutterstock
Citi has partnered with Korea Securities Depository (KSD), a market first for Korea.
Citi will offer Korean securities companies, fund managers, and other local financial intermediaries the opportunity to lend their global equity portfolios to drive higher returns on idle asset holdings.
Shinhan Investment Corp, a leading local brokerage firm, will be the first to initiate Citi’s offering.
Further clients are expected to be enrolled in due course and the partnership with the KSD may be extended to cover other financial assets.
Local Korean investors hold around US $570 billion in global equities via direct and portfolio investments, according to Bank of Korea data, underpinning the potential for growth in international securities lending amongst Korean investors.
Many Korean investors already participate in local Korean securities lending which is intermediated by the KSD.
According to the KSD, this new development allows those Korean investors to benefit from securities lending income on their offshore holdings.
Citi does business in over 160 markets and is currently active in 74 of these via securities lending.
Kyong-Ryol Choi, head of securities and fund division, said: “Securities lending is a crucial component of a developed financial market and this partnership will further enhance Korea’s status as a leading global financial market. We are delighted to partner with Citi and use their global network to support local clients to maximise returns on their equity portfolios.”
David Russell, head of prime, futures and securities services, Asia and head of markets, Hong Kong, said: “Citi is honoured to be selected by the KSD as the first bank to offer local Korean clients access to global securities lending via their platform.”
He added: “Securities lending is a crucial element of an evolved financial market and this partnership will go a long way in cementing Korea’s status as a leading global securities market.”
Citi will offer Korean securities companies, fund managers, and other local financial intermediaries the opportunity to lend their global equity portfolios to drive higher returns on idle asset holdings.
Shinhan Investment Corp, a leading local brokerage firm, will be the first to initiate Citi’s offering.
Further clients are expected to be enrolled in due course and the partnership with the KSD may be extended to cover other financial assets.
Local Korean investors hold around US $570 billion in global equities via direct and portfolio investments, according to Bank of Korea data, underpinning the potential for growth in international securities lending amongst Korean investors.
Many Korean investors already participate in local Korean securities lending which is intermediated by the KSD.
According to the KSD, this new development allows those Korean investors to benefit from securities lending income on their offshore holdings.
Citi does business in over 160 markets and is currently active in 74 of these via securities lending.
Kyong-Ryol Choi, head of securities and fund division, said: “Securities lending is a crucial component of a developed financial market and this partnership will further enhance Korea’s status as a leading global financial market. We are delighted to partner with Citi and use their global network to support local clients to maximise returns on their equity portfolios.”
David Russell, head of prime, futures and securities services, Asia and head of markets, Hong Kong, said: “Citi is honoured to be selected by the KSD as the first bank to offer local Korean clients access to global securities lending via their platform.”
He added: “Securities lending is a crucial element of an evolved financial market and this partnership will go a long way in cementing Korea’s status as a leading global securities market.”
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