Download - Citi - ICG JD
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Securities Services & Issuer Services
IIM Lucknow Presentation
Aashish MishraJanuary 2015
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Citi India- 112 year old legacy
112 year old legacy in India1
Citi continued its leadership into a dominant market shareposition in 2014 in both Equity Capital markets and USDBond issuance
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As the largest Foreign Bank in India, Citi moves ~6% ofIndia’s payment flows, ~13% of FX flows and~8% of tradeflows
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Employer of choice to 11,000+ employees, 4500 + employeesengaged with centers of excellence (COEs) supporting global
businesses
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Over 52,000 Corporate Clients (including SME / MME /Citi Business)
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Over 1,600 large local corporate and multinational clients5
1.7 million credit card customers and 1.2 million retailcustomers
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44 Citibank branches in 28 cities across India;550+ ATMs across the country
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Represents one of the largest foreign direct investments
in financial services in India ($4 Billion + of Capital) 2
Indore
Jaipur
Hyderabad
Lucknow
Noida
Kolkata
Ahmedabad
Baroda
VapiSurat
Bhopal
Akola
Pune
Nasik
Nanded
Ludhiana
Chandigarh
Kurnool
Bangalore
Coimbatore
Kochi
Chennai
Mumbai
Bhubaneswar
DelhiGurgaon
Citibank Branch
Citi Back Offices
Centres of Excellence
Citi Non Resident Indian Offices1
Citi India Desks
Korea Desk
Japan Desk
Citi Front Offices
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Citi Structure- Securities Services & Issuer Services
Regional Consumer Banking Citi Branded Cards
Retail Banking Citi Retail Services
Global Consumer Banking Institutional Clients Group
Capital Markets OriginationCorporate and
Investment Banking
Treasury andTrade Solutions
Private Bank
Markets andSecurities Services
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Citi Structure- Securities Services & Issuer Services
Regional Consumer Banking Citi Branded Cards
Retail Banking Citi Retail Services
Global Consumer Banking Institutional Clients Group
Capital Markets Origination Corporate andInvestment Banking
Treasury andTrade Solutions
Private Bank
Markets andSecurities Services
MunicipalsFX and EM Local
MarketsInvestor Services
Direct Custodyand Clearing
Credit Products
Markets and Securities Services
EquitiesRetail Structured
Products
G10 Rates /Risk Treasury /
FI Finance
Global SecuritizedMarkets
Commodities
Prime Finance
Investor Services
Futures, Clearing,and Collateral
• Futures• OTC Clearing• Collateral Management
• Prime Finance• Delta One• Agency Securities Lending
• Fund Administration• Transfer Agency• Middle Office Services
Global Custody and Alternative Investor Services
• Global Custody• Private Equity Services
Global Fund ServicesPrime Finance
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Citi Structure- Securities Services & Issuer Services
Regional Consumer Banking Citi Branded Cards
Retail Banking Citi Retail Services
Global Consumer Banking Institutional Clients Group
Capital Markets OriginationCorporate and
Investment Banking
Treasury andTrade Solutions
Private Bank
Markets andSecurities Services
Capital Markets Origination
Debt Capital Market Syndicated Loans
Equity Capital Market Issuer Services
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SS & IS: Client and Solution Set
Specialized, but highly linked product set integrated into client solutions
I n v e s t o r
S e r v i c e s
D i r e c t C u s t o d y &
C l e a r i n g
I s s u e r
S e r v i c e s
Pensions/SWF Asset Managers HF’s, FoF, PE Insurance Cos. Central Banks
Broker-Dealers
MTF’s/Infra HFT/ Algo Trader Global Custodian
Corporate Governments Financial Institutions
Clients Products Value Proposition
Middle Office Fund Services/ TA Agent Sec. Lending Global Custody & Alternative
investor Services Prime Finance Futures, Clearing & Collateral
Settlement (cash & securities
movement in the securitiesdepository)
FX/Funding Services Corporate Actions Processing Income Processing Proxy Voting Services Market Information services
Conventional Debt Structured Finance Specialized Paying Agent Depositary Receipts
Solutions orientation, tailoredservice, best –of-breed platform Open architecture with modular
approach
Local presence in 61 markets
Deep market expertise & influence Widest network- global in-market
presence in 98 countries 5 Regional securities finance desks
Expertise in solution engineeringfor complex transactions
Supporting cross-jurisdictionECM/DCM transactions
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Investment Services Product Portfolio
Fund Services
Comprehensive fund administration, accounting,middle office and investor recordkeeping
Award winning hedge and private equity solutions
Global Custody
The world’s most extensive proprietary settlement
and cash processing network
Prime Finance
Prime Brokerage, Delta One & Securities Financeincluding Agency Securities Lending
Futures, Clearing & Collateral Management
Market access and expertise in 100+ countries
through our global network Agnostic connectivity to viable clearing houses
throughout the world
Investment services designed from an investors’
perspective
Investor Prime
Finance Custody
FundServices
Futures, Clearing& Collateral
Modular solutions tailored to firms’ specific requirements
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Direct Custody & Clearing Product
Direct Custody & Clearing provides post-trade processing for equities and fixed income
Research, Analysis &Risk Mgmt
OrderEntry &
ExecutionFinancing
Accounting, Admin &
Trustee Svc
InvestorServices
Clearing andSettlement
Custody and AssetServicing
Post-Trade Other ServicesPre-Trade and Trade
Pre-matching of settlement details (e.g., quantity,amount, date) with counterparties
Settlement (cash & securities movement in thesecurities depository)
Credit extension to facilitate settlement
FX/Funding Services
Fails Coverage Services (temporary lending ofsecurities to clients to cover settlement obligations)
Safekeeping of holdings in the local market
Corporate Actions Processing (e.g., rights, splits, tenders)
Income Processing (e.g., dividends, interest)
Tax Reclamation Services Proxy Voting Services
Cash & Liquidity Management
Market Information services
These services are provided to all Direct Custody & Clearing clients, though some clients may requiremore clearing and settlement, while others require more custody and asset servicing
Exchanging Cash for Securities (or viceversa) in Local Markets
Holding and Managing SecuritiesPositions for Clients
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Issuer Services Product Portfolio
Global A&T & DR Services
Debt Issues/MTNprogram
Mergers &Acquisitions
Project FinanceStructuredFinance
Escrow Services
Note Trustee Debenture
holders’
representative Issuing & paying
agent Security trustee Common
depositary Fiscal/Principal
Paying agent Registrar/
Transfer agent Calculation
agent
Escrow agent(cash,securities etc.)
Calculationagent
Closing agent Accounts bank Real estate
property trust
Tender agent Escrow agent Registrar Exchange
agent
Accounts bank Closing agent Paying bank Institutional
acceptancefacility agent
Trustee Paying agent Accounts bank Calculation
agent
Bond analytics Investor
reporting Transaction
administrator Back-up
servicer
Facility agent Security
trustee(offshore andonshore)
Collateralagent
Escrow agent Accounts
bank Real Estate
Property Trust
DepositaryReceipts
Citi provides issuers with an end-to-end solution to execute their strategy
Capitalmarketssolution tofacilitate tradeexecution
andsettlement Account
management&administration
Investorrelations- IRadvisory &intelligence
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SS & IS Career opportunity
Roles Snapshot of a typical day
Plan for market changes in the next quarter
Meet with SEBI & Ministry of Finance for new capital market products and related
regulations Monitor business P&L for the current month
Analyze client revenue trends to detect deviations and take corrective action
Keep a lookout on competitor activities for identifying opportunities for Citi
Present business strategy to a Global business head
Meet with top-tier fund manager to understand their market asks
Represent Citi on various committees set up by regulators and provide feedback on
expected regulations
Engage with Legal, Compliance and internal control functions for managing the product
Plan for Roadshows in next quarter to US, Europe and Japan
Call the Regional Prime Brokerage & FX Sales teams to co-ordinate Prospect pitches
Meet an Indian fund manager advising an international pension fund for client contacts
Speak with the Lead trader of an international mutual fund for India opportunities
Structure solutions for an international investor keen to invest in Indian Debt
Pull together colleagues across Equities, Debt, FX teams for structuring solutions
Engage actively with clients for managing implementations of large mandates
Jointly pitch on Level 1 ADRs along with Investment Banking or Commercial Banking teamto local corporates
Keep in touch with intermediaries like law firms, brokers, tax consultants on a regular basisfor sourcing new clients and deals
ProductManager
Client SalesManager
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SS & IS Case Studies
A multi- billion dollar pension fund wanted to take exposure in Indian equity market
Citi India helped the pension fund in obtaining an FPI licence and advised the investmentmanager on the best way of accessing India market
Citi India managed their transactions through custody & safekeeping offering, monitoredincome processing along with corporate action processing on their India portfolio
Overseas Pension Fund
A local corporate wanted to access US capital market
Citi India offered a Level 1 American Depositary Receipt program which will be listedin OTC exchange and provide the local corporate access to US equity market atrelatively low cost and practically no SEC compliance
Local Corporate
A domestic mutual fund wanted to outsource their asset and NAV valuation across30+ schemes
Citi India provided the comprehensive fund accounting and NAV valuation offering formanaging their NAV computation, reporting, corporate action servicing and incomeprocessing requirements. Further, Citi India also provided custody and safekeeping
offering for managing their capital market transactions on a daily basis
Domestic Mutual Fund
A leading hedge wanted to access Indian market with leverage
Citi’s local Delta1 desk provided a synthetic access to India while the Citi on -shoredesk helped in providing futures exposure for creating leverage
Hedge Fund
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Securities Services in India
30%Share of FII trade
volumes
50%
Custodian to 50% ofIndian asset managers
16%
No. 1 in USD / INRFX flows
13‘Top-rated’ by Global
Custodian for 13 years
Citi Market Advocacy Efforts – Key Influencer Citi India SFS Overview
Citi is the leading provider of custodial services in India
FICCICapitalMarkets
Committee
SEBI’sForeign
InvestmentCommittee
PASLA andRegulators on
SecuritiesLending
NSDL(central
depository)executivecommittee
Advisorycommittee ofNSCCL (NSE
ClearingCorporation)
Market Leadership
Dominant market share across FPIs & local mutual funds
Comprehensive suite of services – Custody, QDP, SLB, FX,Futures Clearing (Equity, Interest, FX), Fund Admin, Escrow
Won the largest fixed income & largest equity mandates in
India in 2014 with assets of over $15bn now being held by Citi Largest team of 200 people split across two cities
Client Focused Innovation
Most flexible funding and margining solutions – first to enablemargin netting and non-cash collateral for equities
First-to-market FX benchmarking, netting & 3rd party FX
First custodian QDP to enable erstwhile QFI regime
First & only custodian providing a program based securities
lending solution (OpenLend) First custodian to offer e-voting services in India
First Custodian DDP to register Foreign Portfolio Investors(FPI) in India on 1st June 2014
Awards & Recognition
Awarded ‘Best Direct Custody Bank’ for India by Asian
Investor Magazine for four consecutive years (2010-13)
‘Top rated’ by Global Custodian for consistently 13 years
100%Settlement Rate
>99%STP Rate
70%Capacity kept below 70%
2Live processing from two cities
185 AUC (USD Billion)
875,000Transactions per year
Citi SFS by numbers
SEBI’s Core
Committee ofMarket
Intermediaries
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SS & IS: Industry Recognition & Client Testimonies
“Citibank's service is unparalleled. Marketknowledge is exceptional, responsiveness
excellent and Citi has great market influence.”
“The Service provided by Citi at all times hasbeen exceptional from account statements toQuery resolution”
“Excellent service, responsiveness and giving usa feeling that they are always there”
“Citibank India demonstrated their always pro-active approach in getting the information to theclient.”
“Citibank is our preferred provider in this
market and is viewed by us as the goldstandard. They are proactive on issues andinitiatives as well as forward thinking andflexible.”
“It takes very special people to put aside theirwork or personal life to assist in helping us getour requests completed on time and in anefficient manner”
Consistently Top Rated for 13 years in Global Custodian Emerging Markets Survey
Awarded AsianInvestor's Best Direct Custody Bank in India for four consecutive years, 2010-13
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TALENT DEVELOPMENT ATCITI
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A Galaxy of Leaders
Jamie Dimon-
CEO, JP Morgan
Jerry Rao- Founder
Mphasis
Sanjay Nayar-
CEO, KKR India
Ajay Banga- CEO,
MasterCard
Gunit Chadha-
CEO, Deutsche
APAC
Antony Jenkins,
CEO, Barclays
Aditya Puri- CEO,
HDFC Bank
Pramit Jhaveri-
CEO, Citi India Mike Corbat, CEO,
Citigroup
Jane Fraser- Head
Consumer Bank N.A.
Citi
Sally Krawcheck-
Ex CEO Smith
Barney
Victor Menezes-
Vice Chairman, Citi
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The Essence
GLOBALITY
BREADTHINNOVATION
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What we stand by?
Citi works tirelessly to serve individuals, communities, institutions and nations. With 200 years
of experience meeting the world's toughest challenges and seizing its greatest opportunities,we strive to create the best outcomes for our clients and customers with financial solutionsthat are simple, creative and responsible. An institution connecting over 1,000 cities, 160countries and millions of people, we are your global bank; we are Citi.
The four key principles—the values that guide us as we perform our mission—are:
Common PurposeOne team, with one goal: serving our clients and stakeholders.
Responsible Finance Conduct that is transparent, prudent and dependable.
Ingenuity
Enhancing our clients’ lives through innovation that harnesses the breadth and depth ofour information, global network, and world-class products.
LeadershipTalented people with the best training who thrive in a diverse meritocracy that demandsexcellence, initiative and courage.
Citi Mission Statement and Principles:
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MANAGEMENT ASSOCIATEPROGRAM
M t A i t P
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Management Associate Program
A-Max - 14Day Induction
for allManagement Associates
Cross -functional
rotations
InternationalTraining
program -MAGIC
Networking
Opportunities
Final Role
Allocation
2 Year Program
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Thank
You