Citibank NA launches direct custody and clearing services
Thursday, 18 December 2008
FE Report
Citibank, N A, one of the leading global financial conglomerates working in the country, formally launched its Direct Custody and Clearing (DCC) services in Bangladesh Monday.
Citibank will be able to channel more portfolio investments into the Bangladesh's growing securities market through this service.
Under the scheme, Citibank will provide direct custody and clearing services such as equity and fixed income securities settlements, safekeeping, pre-matching, registration corporate actions, income collection, proxy services, cash management, foreign exchange, reporting, market expertise and information services to its clients.
Through the initiative, Bangladesh has joined the world's largest proprietary direct custody and clearing network- spread across 54 countries where the same service is offered by Citigroup.
The move is likely to come as a great boost to the country's growing securities market as the global financial giant is aiming to channel more portfolio investment in the country's capital market using its global portfolio.
The total market capitalization of Dhaka Stock Exchange rose to $ 15 billion in recent period in testimony to the sharp growth which hovered below $ 5 billion only in late 2006.
"Although, the country's market capitalization to GDP ratio has increased significantly in the recent years from 4-5 percent a few years back to around 20 percent at present, the figure is still relatively low comparing to most other emerging markets," Chairman of the Securities and Exchange Commission Faruq Ahmad Siddiqi said on the eve of the launching.
Underlining the need for more foreign investment in the capital market to boost its growth, the Securities and Exchange Commission Chairman expressed hope that the Citibank initiative would draw more foreign investors in the country's capital market.
"At the moment, foreign companies contribute merely 3 to 4 percent of the total investment in the country's capital market and therefore there is a big room for exploring this untapped capital market," Faruq said.
Focusing on the prevailing global financial crisis, US Ambassador in Bangladesh James Moriarty in his speech said, "The present global crisis reinforces the need for Bangladesh to focus on economic priorities".
Underscoring the need for further liberalization of trade and commerce in the wake of this crisis, the US Ambassador said, "In terms of trade and investment, our interest and that of our international partners lies in pursuing the open markets and open investments which have fueled so much economic growth worldwide".
Citibank, N A, one of the leading global financial conglomerates working in the country, formally launched its Direct Custody and Clearing (DCC) services in Bangladesh Monday.
Citibank will be able to channel more portfolio investments into the Bangladesh's growing securities market through this service.
Under the scheme, Citibank will provide direct custody and clearing services such as equity and fixed income securities settlements, safekeeping, pre-matching, registration corporate actions, income collection, proxy services, cash management, foreign exchange, reporting, market expertise and information services to its clients.
Through the initiative, Bangladesh has joined the world's largest proprietary direct custody and clearing network- spread across 54 countries where the same service is offered by Citigroup.
The move is likely to come as a great boost to the country's growing securities market as the global financial giant is aiming to channel more portfolio investment in the country's capital market using its global portfolio.
The total market capitalization of Dhaka Stock Exchange rose to $ 15 billion in recent period in testimony to the sharp growth which hovered below $ 5 billion only in late 2006.
"Although, the country's market capitalization to GDP ratio has increased significantly in the recent years from 4-5 percent a few years back to around 20 percent at present, the figure is still relatively low comparing to most other emerging markets," Chairman of the Securities and Exchange Commission Faruq Ahmad Siddiqi said on the eve of the launching.
Underlining the need for more foreign investment in the capital market to boost its growth, the Securities and Exchange Commission Chairman expressed hope that the Citibank initiative would draw more foreign investors in the country's capital market.
"At the moment, foreign companies contribute merely 3 to 4 percent of the total investment in the country's capital market and therefore there is a big room for exploring this untapped capital market," Faruq said.
Focusing on the prevailing global financial crisis, US Ambassador in Bangladesh James Moriarty in his speech said, "The present global crisis reinforces the need for Bangladesh to focus on economic priorities".
Underscoring the need for further liberalization of trade and commerce in the wake of this crisis, the US Ambassador said, "In terms of trade and investment, our interest and that of our international partners lies in pursuing the open markets and open investments which have fueled so much economic growth worldwide".