DTCC's European Subsidiary Chosen as Clearance and Settlement Provider for Project Turquoise

Citi's Global Transaction Services to Serve as EuroCCP's Settlement Agent

LONDON, April 18 /Xinhua-PRNewswire/ -- The Depository Trust & Clearing

Corporation, a leading provider of clearance, settlement and information

services, announced today that its EuroCCP subsidiary has been selected to

provide a clearance and settlement solution for Turquoise. Turquoise is a

consortium of seven major financial institutions that are working to develop

a new pan-European trading platform.

EuroCCP will provide all clearing, settlement and risk management

services to Turquoise. Citi's global transaction services business will serve

as EuroCCP settlement agent. This partnership recognizes Citi's extensive

pan-European securities network and its strong links with the European

central securities depositories.

This decision follows a request for proposal (RFP) process that has been

under way for a number of months and involved a rigorous review of proposed

alternative post-trade solutions.

DTCC has a well-earned reputation for certainty and reliability, and more

than 30 years experience in clearing and settling virtually all equity and

fixed income trading in the U.S. Last year, DTCC cleared and settled more

than US$1.5 quadrillion in securities transactions. In addition, they provide

post-trade services to the OTC derivatives market on a global basis. EuroCCP

will build upon DTCC's extensive experience and technology know-how as a

central counterparty (CCP).

"We are delighted that EuroCCP has been selected to support Turquoise,"

said Donald F. Donahue, DTCC president and CEO. "We have a long history of

providing clearing and settlement solutions across the industry and a strong

track record of helping customers lower transaction costs, reduce risk and

improve efficiency. Over the coming months, we will be working very closely

with Turquoise and we're confident that we can deliver this highly scalable,

central counterparty platform within the timeframes required."

"DTCC is well-known in the global financial services market, and they

presented a well-thought out proposal to the consortium," said a Turquoise

spokesperson. "The face of financial services is becoming much more global in

nature, and as old barriers break down in Europe under MiFID and other

directives, the landscape is becoming much more competitive. We believe

EuroCCP and Citi's global transaction services business will help Turquoise

to succeed as a new, low-cost, pan-European platform that can build the

necessary liquidity to make it a major contender against existing trading


"We are very pleased to partner with EuroCCP as settlement agent for

Turquoise," said Clive Triance, Chief Operating Officer for Securities and

Fund Services, Europe, Middle East, and Africa at Citi. "Citi has settlement

capabilities in over 80 markets globally, including all the European markets

covered by Turquoise. Our established relationships with the European central

securities depositories will ensure local settlement efficiency. We look

forward to working with EuroCCP in supporting this exciting new trading


How the new platform will work

EuroCCP will accept trades from the Turquoise trading platform and these

trades will then be netted on trade date. EuroCCP will guarantee trades upon

receipt and validation. For all trading members of Turquoise that are not

clearing members of EuroCCP, these trades will be handled through general

clearing member relationships.

EuroCCP will apply risk-based margining, with appropriate levels of

margin collected on a daily basis. Any unsettled obligations will be

marked-to-market each day.

Citi's global transaction services business will process EuroCCP's

settlement instructions for delivering and receiving securities and related

payments in various currencies through its local securities network.

EuroCCP will be a UK Recognised Clearing House (RCH), headquartered in

London. DTCC is in the process of filing an application with the Financial

Services Authority (FSA) to receive such recognition in time for the

Turquoise launch date. EuroCCP will be operated on an "at-cost" basis, and

any excess revenues collected beyond the cost to support the operation will

be refunded to participant members.

The seven investment banks behind Turquoise are Credit Suisse, Deutsche

Bank, Goldman Sachs, Morgan Stanley, Merrill Lynch, Citi and UBS, who

together generate around half of Europe's equity order traffic.

About DTCC

The Depository Trust & Clearing Corporation (DTCC), through its

subsidiaries, provides clearance, settlement and information services for

equities, corporate and municipal bonds, government and mortgage-backed

securities and over-the-counter derivatives. In addition, DTCC is a leading

processor of mutual funds and insurance transactions, linking funds and

carriers with their distribution networks. DTCC's depository provides custody

and asset servicing for 2.8 million securities issues from the United States

and 100 other countries and territories, valued at $36 trillion. Last year,

DTCC settled more than US$1.5 quadrillion in securities transactions. DTCC

Has operating facilities in multiple locations in the United States and

overseas. For more information on DTCC, visit .

About Citi

Citi, the leading global financial services company, has some 200 million

customer accounts and does business in more than 100 countries, providing

consumers, corporations, governments and institutions with a broad range of

financial products and services, including consumer banking and credit,

corporate and investment banking, securities brokerage and wealth management.

Citi's major brand names include: Citibank, CitiFinancial, Primerica, Citi

Smith Barney and Banamex. Additional information may be found at or .

Source: The Depository Trust & Clearing Corporation
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