Osaka Securities Exchange and Nasdaq Japan, Inc., Appoint Citibank as the Clearing Agent for International Stocks Traded on The Nasdaq Japan Market
NEW YORK–(BUSINESS WIRE)–Feb. 20, 2001
The Osaka Securities Exchange, Nasdaq Japan, Inc., and Citibank, N.A. today announced their agreement to appoint Citibank as the securities clearing agent for international stocks traded on the Nasdaq Japan Market, a section of the Osaka Securities Exchange.
The Nasdaq Japan Market’s International Section is scheduled to open in April of this year followed by trading planned in June. The Nasdaq Japan International Section will make stocks from Nasdaq (US), Asia Pacific and other global companies available to Japanese investors for trading in Japanese yen.
Citibank, Worldwide Securities Services (WWSS), a division of Citigroup’s Global Corporate and Investment Bank, will utilize its global network as a securities clearing agent for international securities traded on The Nasdaq Japan Market. All Nasdaq Japan international stocks will be cleared through Citibank. However, cash obligations will continue to be cleared through OSE’s existing cash clearing agents. Citibank’s services for the Nasdaq Japan Market will contribute to facilitating efficient and risk reduced settlement.
The OSE and Nasdaq Japan, Inc., chose Citibank for its proven experience as one of the top worldwide custodians and for its flexibility in delivering an optimal settlement structure for the Nasdaq Japan Market. Additionally, the OSE and Nasdaq Japan, Inc., positively rated Citibank’s competitive fee schedule and highly automated operational procedures that will produce benefits for all market participants including member securities firms, institutional and private investors.
“In appointing Citibank, a company with global and state of the art clearing services, we are taking a major step forward to improving the efficiency and stability of international stock settlement,” said Goro Tatsumi, President and CEO of the Osaka Securities Exchange.
“As clearing agent for the International Section of the Nasdaq Japan Market, we strongly believe that Citibank, with its presence in more than 50 financial markets throughout the world, brings a level of expertise and know-how unrivalled in Japan,” said Yoshiro Katsuya, Chief Market Operations Officer for Nasdaq Japan, Inc. “Over the coming months and years, this move will contribute significantly to the expansion of our market and allow us to take advantage of all the technological innovations taking place throughout the global investment community infrastructure.”
“We are extremely pleased to have been awarded the mandate to provide securities clearing services to the Nasdaq Japan Market,” said Paul Egan, Head of Marketing and Business Development, Citibank WWSS Japan. “One of our key objectives is to leverage our global network to provide efficient access to international securities for our customers. We believe the success of this venture will be attributed to the strength, sophistication and innovation each party brings to the table.”
The Osaka Securities Exchange was established on April 1, 1949, as a membership organization under the Japanese Securities and Exchange Law and is one of Japan’s oldest and most respected securities exchanges. In order to keep pace with growing diversified needs, the OSE introduced a fully automated computerized trading system. The OSE is also the largest derivatives market in Japan. Nikkei 225 futures trading is well established as a key product among stock index futures traded on the world’s futures exchanges. For more information, visit www.ose.or.jp.
Nasdaq Japan, Inc., was founded on June 15, 1999 as a joint venture company with the mission of providing the latest market technology to facilitate The Nasdaq Japan Market, a state-of-the art electronic securities market for the growth of capital and globalization of the Japanese economy. On December 24, 1999, the OSE and Nasdaq Japan Planning, Inc. announced their business cooperation agreement to establish the Nasdaq Japan Market as a section of the Osaka Securities Exchange. Nasdaq Japan, Inc., operates as a private, for-profit organization with ownership by the NASD, Softbank Corp. and thirteen leading securities firms. For more information, visit www.nasdaq-japan.com.
Citibank N.A. has been in business in Japan since 1902. Citibank provides services for corporate clients as well as for individual customers. Provision of custodial services to local, foreign investors and intermediaries in Japan exceeds 30 years. Citibank Worldwide Securities Services (WWSS) is a unit of Citigroup’s Global Corporate and Investment Bank. WWSS serves global issuers, investors and intermediaries through the industry’s largest proprietary network, spanning 51 counties. It currently provides securities services to more than 2,500 customers worldwide and has more than $4 trillion in assets under custody. WWSS is the industry’s premier custodian of cross-border assets, top ranked global clearing agent and a recognised leader in depositary receipt, agency and trust services. For more information, please visit http://www.citibank.com/corpbank/wwss/.
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