Nasdaq Picks Citi to Boost Efficiency in Post-Trade Systems
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A new announcement published by Citi yesterday, December 9, unveiled that Nasdaq selected Citi Investor Services to provide Account Operator Services, marking a major strategic step in modernizing and streamlining its post-trade operations.
The announcement says that this will enable its integrated access to relevant Financial Market Infrastructures (FMIs) while reaping efficiencies in the delivery of its post-trade services.
A Broader Trend Is Seeing Financial Institutions Outsource Processes
The mandate will cover both the Nordic markets and Euroclear Bank, allowing Nasdaq to leverage Citi’s expansive global network and advanced technology stack for critical post-trade functions.
“With the outsourcing of these processes, Nasdaq has the flexibility to dedicate resources to client, transformation, and innovation-focused priorities,” Citi said in its announcement.
Citi’s own infrastructure will ensure harmonized access to FMIs, thus simplifying the operational landscape. This will also remove the need for Nasdaq to maintain multiple interfaces and requirements in different jurisdictions. Furthermore, the move will let the exchange to focus more on competitive differentiation instead of back-office complexity.
Commenting on the matter, Citi Investor Services’ Head of Sales and Client Services, Matthew Bax, said that Citi is the only bank in the Nordics to offer Account Operator services.
“Our digital-led solutions and market expertise are creating greater efficiencies for clients and enabling connectivity across the financial ecosystem. This mandate extends our long-standing collaboration with Nasdaq as we jointly shape the future of global capital markets,” Bax added.
Meanwhile, Nasdaq Europe’s President, Roland Chai, noted that working with Citi represents a natural step, as the two share a common desire to simplify post-trade processes by focusing on harmonized solutions and innovation. “Citi was the preferred choice for Nasdaq as we sought to gain efficiencies across our post-trade activities,” he concluded.
A Change In The Way Post-Trade Operations Are Being Done
In the end, the collaboration represents an evolution in how post-trade operations are being handled, embracing partnerships with global custodians and service providers to bring automation, scale, and modernization to processes that were traditionally highly resource-intensive.
In other words, as post-trade operations are becoming more complex due to market globalization, there is a broader industry trend seeking to simplify matters – especially now, as regulatory demands are intensifying, and FMIs evolve technologically.
Instead of building and maintaining large teams dedicated to matters like settlements, reconciliation, and FMI connectivity, financial institutions and exchanges are teaming up with specialized partners that can handle scale, automation, and regulatory compliance for them.
