Citigroup and Clearstream Launch Quad-party Financing Services
Citigroup Global Transaction Services, Clearstream and Barclays Capital have executed the first ever quad-party securities financing trade, following a collaborative effort to develop a new collateral custody service facility to enable easier financing of international and domestic assets. Quad-party Repo is an extension of the Tripartite Repo Service of Clearstream. The fourth party involved – the local agent bank appointed by the cash taker to hold their domestic assets – becomes an extension of the triparty set up. Instead of forcing the cash taker to move the assets from their domestic agent bank into the international market for financing, quad-party enables the triparty repo to be extended into domestic markets, thereby respecting the cash takers choice of where they want to hold their assets. Citigroup and Clearstream jointly developed the service, and Barclays Capital, a key user of collateralised financing services at Clearstream, executed the first transaction at the end of last month.