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Citi (C) and Snowflake Partner to Revamp Post-Trade Data Flows

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In order to help the bank trim costs and streamline its post-trade processes, Citigroup (C - Free Report) recently entered into a strategic partnership with Snowflake (SNOW - Free Report) to re-assess and reform the processes across financial services transactions. Snowflake’s Financial Services Data Cloud aids firms to boost their top-line growth and steer innovation while alleviating any risk.

A mammoth host of players across markets have to reconcile transactions in their ledgers any time a trade activity occurs. Per a Bloomberg article, Fiona Horsewill, the head of data for Citi’s securities-services business, believes that with this tie-up, Citi will be well poised to provide a real-time record of that data to all parties in a transaction.

In Snowflake’s Data Cloud provider-agnostic cloud environment, this partnership will mobilize Snowflake’s robust, secured data sharing as well as multi-party permissioning faculties with Citi’s wide market expertise. Moreover, it will leverage on Citi's leading proprietary custody network footprint traversing more than 60 markets and global markets franchise.

Snowflake’s software is used for warehousing data in the cloud. It has been working with companies which are renovating their corporate applications and networks. Citi also has a verified track record in conceiving and renovating industry processes, in partnership with its Innovation Lab network and D10X programs. It had also worked out an industry problem connected to proxy voting and shared this with the industry via Proxymity.

Chris Cox, global head of Data and Digitization for Citi Securities Services, said, “The vision for this initiative is to provide a similar outcome and deliver the next generation of securities services to our clients and their counterparts. Integrating Snowflake with Citi’s VelocitySM Clarity data platform can help to deliver faster, more complete client data—adding the Snowflake channel option to existing real-time APIs and visualizations—plus opening the door to some other interesting possibilities.”

The collaboration will offer a far-out solution by controlling data models and ensuring seamless end-to-end transaction data flow across a business, in order to fulfill the diverse needs of global clients.

Okan Pekin, global head of Citi Securities Services, noted, “Clearly, if we were to start afresh, we would not design market transaction data workflows in the way they function today. In partnership with Snowflake, we are striving to provide solutions to the challenge of multiple records across multiple systems and the associated costs and data reconciliation consequences that hinder our clients and the industry today.”

Costs linked to the post-trade process have flared up in recent years alongside the higher trading volumes. Hence, this tie-up will help reduce friction in the post-trade data process, curb costs and provide data in as near real-time as possible.

Shares of this Zacks Rank #3 (Hold) company have depreciated 2.6% over the past six months, against the industry’s rally of 4.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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