FX Invest: EIB signs Citi for collateral management

Citi gains key client for third-party collateral management service

The European Investment Bank (EIB) has signed Citi as its collateral management and collateral custody agent responsible for the EIB’s derivatives operations.

Citi is using its OpenCollateral software to mark derivatives collateral to market, carrying out margin calls and settlement responsibilities on behalf of the EIB. The EIB will continue to value its own derivatives transactions to preserve confidentiality with counterparties. Citi is also acting as global custodian for the securities collateral.

As part of a growing trend among dealers, Citi is increasingly involved in supplying third-party services as an integrated component of its derivatives servicing capabilities. This enables buy-side traders to delegate certain functions, generally back-office and derivatives clearing services, which improves customer efficiencies across a number of collateral management business areas.