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Citi (C) Expands Notional Pooling Offering to Luxembourg
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Citigroup, Inc. (C - Free Report) has expanded its liquidity management product offerings in Europe by launching its multi-currency notional pooling (MCNP) capabilities in Luxembourg, making the platform available in 11 locations. As part of the offering, the company has attached a unique integrated Environmental, Social, and Corporate Governance (ESG) offering with the solution.
As an integral offering of the liquidity management product suite, multi-currency notional pooling is popularly used at international financial centers such as London and Singapore. It is used by corporate treasury centers to efficiently manage cash flow in multiple currencies as a single position, without changing FX exposures or having to enter FX swaps.
Along the same lines, the solution offered in Luxembourg will support all major global currencies. Leveraging on Citigroup’s Global Notional Pooling platform, it will offer monitoring pool entities, extensive reporting for tracking exposures and reconciling financial benefits for clients in multiple pooling centers across the globe.
Czeslaw Piasek, EMEA head of Liquidity Management Services, Treasury and Trade Solutions, Citigroup, remarked, “Luxembourg is an important treasury location for our multinational client base. The launch of our integrated multi-currency notional pooling capabilities and ESG offering there reflects Citi’s strategy to continuously expand its cash management capabilities in Europe, serving clients through its physical presence across 24 countries and seamless connectivity to Citi’s global network.”
The offering will also enable clients to use automated ESG investments options and use liquidity management capabilities such as target balancing, multi-bank target balancing, cross-currency sweeps and virtual accounts to meet their treasury objectives.
As part of the launch, Citigroup has combined notional pooling with a new range of ESG Money Market Fund options available through an automated sweep from Luxembourg-based accounts. This along with enhanced treasury workstation integration will facilitate the company’s clients to make sustainable short-time investments and automate their ESG initiatives.
While such efforts to enhance product offerings are strategic fits, Citigroup continues to encounter many investigations and lawsuits from investors and regulators.As the company continues to work through its legacy legal issues, we believe that the company will witness elevated legal expenses and litigation provisions, which will likely hurt its financials.
A growing number of financial services organizations, including banks, are resorting to convenient, frictionless digital services for their customers and clients.
Recently, Northern Trust (NTRS - Free Report) has rolled out a function, which automates initial margin calculation, facilitating easy compliance with global regulations related to the trading of over-the-counter (OTC) derivatives for asset manager and asset owner clients. The effort is likely to drive the efficiency of OTC derivative transactions.
Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) augmented its wealth management capabilities by developing the MUFG Wealth Management Digital Platform. The platform will be deployed in the second half of fiscal 2021 to provide optimal digital solutions to high net-worth clients.
New York Community Bancorp, Inc.’s (NYCB - Free Report) has built a cutting-edge digital payment process via the development of a blockchain-induced digital marker — USD Forward — which is the first to be used by a bank on the Provenance Blockchain.
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Citi (C) Expands Notional Pooling Offering to Luxembourg
Citigroup, Inc. (C - Free Report) has expanded its liquidity management product offerings in Europe by launching its multi-currency notional pooling (MCNP) capabilities in Luxembourg, making the platform available in 11 locations. As part of the offering, the company has attached a unique integrated Environmental, Social, and Corporate Governance (ESG) offering with the solution.
As an integral offering of the liquidity management product suite, multi-currency notional pooling is popularly used at international financial centers such as London and Singapore. It is used by corporate treasury centers to efficiently manage cash flow in multiple currencies as a single position, without changing FX exposures or having to enter FX swaps.
Along the same lines, the solution offered in Luxembourg will support all major global currencies. Leveraging on Citigroup’s Global Notional Pooling platform, it will offer monitoring pool entities, extensive reporting for tracking exposures and reconciling financial benefits for clients in multiple pooling centers across the globe.
Czeslaw Piasek, EMEA head of Liquidity Management Services, Treasury and Trade Solutions, Citigroup, remarked, “Luxembourg is an important treasury location for our multinational client base. The launch of our integrated multi-currency notional pooling capabilities and ESG offering there reflects Citi’s strategy to continuously expand its cash management capabilities in Europe, serving clients through its physical presence across 24 countries and seamless connectivity to Citi’s global network.”
The offering will also enable clients to use automated ESG investments options and use liquidity management capabilities such as target balancing, multi-bank target balancing, cross-currency sweeps and virtual accounts to meet their treasury objectives.
As part of the launch, Citigroup has combined notional pooling with a new range of ESG Money Market Fund options available through an automated sweep from Luxembourg-based accounts. This along with enhanced treasury workstation integration will facilitate the company’s clients to make sustainable short-time investments and automate their ESG initiatives.
While such efforts to enhance product offerings are strategic fits, Citigroup continues to encounter many investigations and lawsuits from investors and regulators.As the company continues to work through its legacy legal issues, we believe that the company will witness elevated legal expenses and litigation provisions, which will likely hurt its financials.
Shares of this Zacks Rank #3 (Hold) company have gained 16% in the year-to-date period, underperforming the industry’s rally of 33.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Steps by Other Companies
A growing number of financial services organizations, including banks, are resorting to convenient, frictionless digital services for their customers and clients.
Recently, Northern Trust (NTRS - Free Report) has rolled out a function, which automates initial margin calculation, facilitating easy compliance with global regulations related to the trading of over-the-counter (OTC) derivatives for asset manager and asset owner clients. The effort is likely to drive the efficiency of OTC derivative transactions.
Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) augmented its wealth management capabilities by developing the MUFG Wealth Management Digital Platform. The platform will be deployed in the second half of fiscal 2021 to provide optimal digital solutions to high net-worth clients.
New York Community Bancorp, Inc.’s (NYCB - Free Report) has built a cutting-edge digital payment process via the development of a blockchain-induced digital marker — USD Forward — which is the first to be used by a bank on the Provenance Blockchain.