Citi Securities and Fund Services, a division of the bank's global transaction services, has expanded its agreement with the Korea Securities Depository (KSD) to support a daily turnaround investment service to include the US market.
Under the expanded agreement, Citi will provide securities settlement services for turnaround trades of the US market that are executed by securities firms and investors in Korea. The enhanced offering by the KSD marks the first time that the service has been offered to traders in Korea.
The announcement on the addition of the US market builds on the first agreement in August 2008 which involves Citi supporting the KSD's launch of daily turnaround investment services for the Hong Kong and Japan markets. Citi is the only custodian bank to support KSD's daily turnaround investment services.
KSD's launch of the service corresponds with the increase in offshore investment by Korean securities firms and investors both of which are demanding better management of their investments. Both Citi and KSD are currently exploring further expansion of this offering to include other markets to cater to offshore investment flows of Korean securities firms and investors.
"Through our partnership with Citi, the KSD are responding to the requirements of Korean securities firms and investors, who are becoming more sophisticated with their offshore investments," says KSD CEO Lee Soo-Hwa. "We see the demand for daily turnaround investment services only expanding and we will be ready to respond to the demands of these investors."
David Russell, regional head of securities and fund services for Asia-Pacific at Citi, says the expansion of the services to include the US clearly shows the growing importance of Korean investors globally.