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INVESTMENT BANKING | Staff Reporter, China

CLSA partners with Citi to offer real-time delivery versus payment settlement

The solution is for the Shanghai Connect and Shenzhen Connect.

CLSA Ltd. has partnered with Citi to offer institutional investors real-time delivery versus payment (DVP) settlement for transactions in China A-Shares through Shanghai Connect and Shenzhen Connect.

Investors who appoint both Citi as their SPSA custodian or subcustodian through their global custodian and CLSA as one of their multiple execution brokers can benefit from receiving cash proceeds earlier and thereby minimizing counterparty risk.

“CLSA has always been committed to providing high quality value-added financial services for clients,” said Xen Gladstone, Group Head of Sales, Trading & Execution at CLSA. “In partnering with Citi, we are able to support our clients with a real-time DVP SPSA settlement solution to reduce their risk exposures for Shanghai and Shenzhen Stock Connect.”

“Citi has a long-standing relationship with CLSA and we are honored to enable them to deliver a real-time DVP solution for their clients to better manage their operational risks associated with trading China A-shares though Shanghai and Shenzhen Connect.” said Cindy Chen, Managing Director and Hong Kong Head of Securities Services at Citi.

“Citi is the first provider to offer a multi-broker DVP solution which expands the number of brokers to allow investors to better comply with regulatory requirements and reduce contingency risks,” continued Chen. “This is important as investors prepare for the eventual inclusion of China A-shares into global indices.”

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