Citi will begin offering direct custody and clearing (DCC) services to its clients in Norway, expanding its Nordic offering.
The move expands Citi’s DCC network to over 60 markets globally and 37 markets across Europe, the Middle-East and Africa (EMEA).
Citi already offers direct custody and clearing services in Denmark, Finland and Sweden.
“This launch highlights our commitment to become a direct participant in key markets where our clients operate and offer a comprehensive, integrating custody offering across Scandinavia, thereby enabling clients to benefit from the consistency and connectivity of Citi’s integrated network,” said Reto Faber, EMEA head of direct custody and clearing, Citi.
With its new Norway offering, Citi will partner with Verdipapirsentralen (VPS), the local central securities depository, and will connect to it directly through its Dublin head office, facilitating the use of Citi’s single legal vehicle (SLV) platform in Europe.
Citi’s VPS allows direct access to key European locations, as well as the pan-European settlement platform TARGET2 Securities (T2S).
“We welcome Citi as a market participant and look forward to having a global bank as a direct member of VPS. Norway is an interesting market to foreign investors and Citi’s membership confirms the continued attractiveness of VPS and the Norwegian capital markets,” added Sveinung Dyrdal, executive vice president, VPS.
Citi will be facing stiff competition from regional sub-custody providers Nordea and SEB.
Increased competition in the country has created a tougher environment to secure international investors, and earlier this year, DNB Bank said it would no longer provide custody services for foreign clients, citing increased competition as the reason for its exit.