Citigroup-BSE in major deal

12/05/2010 00:00 AST

Citigroup, through its Global Transaction Services business, has signed a depository agreement with the Bahrain Stock Exchange (BSE).

This will enable the bank to provide custody of BSE-listed securities to local, regional and international institutional investors.

The signing of the agreement with Citi comes along with BSE's move to its new state-of-the-art headquarters at the Bahrain Financial Harbour.

The BSE agreement, which takes effect from September, takes Citi's proprietary network, the largest in the world, to 58 markets globally, of which 32 markets are in Europe, the Middle East and Africa.

"We are continuously seeking to co-operate with leading local and international institutions to provide more financial services and alternative advanced investments to investors at BSE," said BSE director Fouad Rashid.

"We welcome the joining of Citigroup to the companies and institutions co-operating with the BSE, and we hope that the signing of this agreement will encourage and attract more foreign investment to Bahrain and, therefore, enhance the shareholders' base at BSE," he said.

"The financial services that complement the trading procedures in capital markets have witnessed a significant development, emphasising its importance in the investment of securities to meet the evolving and expanding needs of investors.

"We will continue to co-operate with leading financial institutions to provide custodian services and other related services in order to provide more investment options for investors," he added.

"The BSE is a world-class bourse and one of the most experienced in the region," said Citigroup head of direct custody and clearing Lee Waite.

"Providing direct custody and clearing services to the investors at the BSE is an integral part of Citi's regional expansion plan to embed its securities and funds services business in the region.

"Reaching 58 markets is a milestone for our business and shows Citi's unrivalled ability to respond to and support our clients who will benefit from local expertise combined with globally consistent services."

Gulf Daily News