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Market Access What’s NewSeptember 2013 Issue 23

Welcome to issue twenty-three of Market Access, a periodical look at new solutions and significant market developments from around the world that may impact your business.

Global Update from Lee Waite

Continued ExpansionCiti recently acquired ING Securities Services’ Central and Eastern European business. The business has EUR110 billion in assets under custody and is present in Bulgaria, the Czech Republic, Hungary, Romania, Russia, Slovakia and the Ukraine. Once implemented, the addition of Bulgaria will extend Citi’s custody network coverage to over 95 markets and its proprietary custody network will be expanded to 62 markets.

We are well underway with this transition and believe that the acquisition of the ING business has delivered a clear statement of intent about Citi’s commitment to the business both in the CEE and in all of our existing markets.

2013 EventsAs a proud sponsor for the 2013 Sibos Conference, we’d like to welcome you to visit our team at this year’s event. Every year, we take great pride in showcasing our thought leaders at Sibos, and this year is no exception. We’re looking forward to seeing you in Dubai this year.

Citi will also be sponsoring both NeMa Africa and NeMa Asia this fall. Following NeMa Europe, seniors from the Securities and Fund Services team will be participating in various panels and roundtables during the two events. See our Events page for more details.

AccoladesGlobal Finance announced the World’s Best Global Banks for 2013, awarding Citi the Global Best Bank for Sub-Custody. Selections were made after extensive consultations with bankers,

corporate financial executives and analysts throughout the world. Receiving this honor reinforces the message to clients that Citi is the leading financial partner in transaction banking services.

Awards will be presented to Citi leaders in Dubai during the Sibos Conference, and we would like to extend an invitation to attend the Awards Ceremonies on September 18th between 9-10am.

Citi Introduces The Market Infrastructure Risk Heat MapCiti has introduced the Market Infrastructure Risk Heat Map (“Risk Map”) to provide investor and intermediary clients with comprehensive risk evaluations for each market in Citi’s global network. Through an analysis of over 65 key metrics delivered by Citi’s on-the-ground experts in over 95 countries, the Risk Map delivers a quantitative assessment of market infrastructure risk for account structure and opening, settlements, safekeeping, asset servicing, cash management and taxation. With the largest propriety network, Citi is uniquely equipped to provide information around market events directly from our local market experts, helping our clients make more informed decisions and react quickly. The new Risk Map is now available on Market Guide.

We will continue to keep you informed of the latest market developments. Please do not hesitate to contact me or your Relationship Manager should you have any questions or if you would like additional information.

Lee Waite

Managing Director Direct Custody & Clearing + 212 816 3247 • lee.waite@citi.com

3What’s New | September 2013 Issue 23

Table of Contents

1. What’s New Across our Network ..............................................................5

Value-Added Services for Broker-Dealers ................................................9

Global Event Calendar ..................................................................................11

Citi Viewpoints Article ................................................................................. 12

2. What’s New Acroos the Globe ..................................................................15

What’s New in the Americas ...................................................................... 16

What’s New in Europe, Middle East and Africa ..................................... 20

What’s New in Asia Pacific ......................................................................... 26

3. Country Contacts ........................................................................................31

Mexico Peru United States

Israel Italy Spain Switzerland Turkey

JapanHong Kong India Indonesia

What’s New Across Our Network

TOPIC WHAT’S NEW? WHERE? WHAT’S THE IMPACT?Market Guide

Launched several enhancements to Market Guide, Citi’s premier web channel for delivering securities market information*:

• Migrated to an enhanced video platform for Market Guide’s library of video content featuring Citi’s market & product experts from around the world.

• Global • Clients can now view videos on various mobile devices (smartphones/ tablets) and share videos seamlessly using new sharing options.

• Introduced new data visualizations to the Market Infrastructure Risk Heat Map providing clients with new ways to access the market infrastructure risk analysis for each market in Citi’s global network.

• Helps clients evaluate market infrastructure risk across several key areas including account structure and opening procedures, settlements, safekeeping, asset servicing, cash management and taxation.

• Developed data export tools to complement the data visualizations within the Market Infrastructure Risk Heat Map feature which will facilitate further risk reviews by clients.

• Provides clients with access to the tools and data needed to customize their market infrastructure risk analysis.

• Enhanced Market Guide’s business holiday calendar publishing functionality with new tools to simplify the publishing process.

• Improves timeliness in the publishing of business holidays for all markets in Citi’s global network.

*Available to clients based on their Market Guide entitlements.

TOPIC WHAT’S NEW? WHERE? WHAT’S THE IMPACT?Network Expansion

• Acquired ING’s Custody and Securities Services business in Central and Eastern Europe.

• Bulgaria, Czech Republic, Hungary, Romania, Russia, Slovakia and Ukraine

• With the addition of Bulgaria, will extend Citi’s proprietary custody network to 62 markets.

• Offers clients securities services in the region through strengthened country presence combined with access to Citi’s global banking network.

Asset Services

• Enhanced the SWIFT MT564 event and reminder notifications for Rights Offers to include the date information with regard to Securities and Cash Movements in Field 98A.

• Latin America • Allows for enhanced reporting and improves Straight-Through-Processing (STP) for clients.

• Launched a new report in CitiDirect for Securities (CDS) which reflects client cum-entitlement balances (CEB) on Australian listed securities during a corporate action period (real time) and post record date for multiple event types.

• Australia • Offers enhanced reporting to clients.

• Improved client instruction deadline for voluntary corporate actions by 3 hours.

• Thailand • Provides clients with additional time to send instructions.

• Enhanced the SWIFT MT566 payment messages to include the French Financial Transaction Tax rate and amount to be debited.

• France • Improves operational efficiency for clients.

TOPIC WHAT’S NEW? WHERE? WHAT’S THE IMPACT?Asset Services

• Implementing capability in November 2013 to provide SWIFT MT567 confirmations for proxy voting instructions received from clients.

• Austria, Belgium, France, Germany, Italy, Netherlands, Portugal, South Africa, Spain, Sweden and Switzerland

• Improves timeliness of acknowledgment of instructions sent to clients.

• Implemented capability to allow clients to select a threshold at account level for income payment reversals to be processed when threshold is exceeded or at end of day.

• United States • Enhances operational efficiency and minimizes impact of income reversals for clients.

• Incorporated Record Date information for Consent Offers (CONS) in field tag 98A: RDTE in SWIFT MT564 event notifications.

• United States • Provides for enhanced reporting and increases STP for clients.

• Implemented linkage of SWIFT MT568 narrative to the original MT564 event notification.

• United States • Increases operational efficiency and STP for clients.

Summary Value-Added Services for Broker-Dealers

VALUE-ADDED SERVICES FOR BROKER-DEALERS WHAT’S THE BENEFIT?Citi offers a variety of value-added services for broker-dealer clients over and above our core clearing and custody product offering. These services include the following:

• On-Exchange Settlement Services allows broker-dealers to settle trades directly on an exchange or on an MTF, often as remote members.

• General Clearing Member (GCM) Services or Third-Party Clearing where Citi acts as the client’s General Clearing Member (GCM) at the Central Counterparty (CCP).

• Account Operator Services, which allows a client to maintain an account at the Central Depository in its own name while Citi operates the account on the client’s behalf.

• Fails Coverage where clients have the ability to borrow securities to mitigate potential fails.

• Derivatives Clearing, which supports the clearing of exchange traded derivatives.

Supports client needs as their business models expand and as local market practices and regulations change.

• Eliminates the need for a client to establish direct membership in a local depository and make infrastructure investments required to facilitate the settlement of on-exchange trades.

• Enables clients to focus on core trading activities while utilizing a third party for CCP connectivity, membership and clearing activities.

• Provides flexibility for broker-dealers to grow their business without incurring substantial back-office fixed costs.

• Reduces settlement risk and the potential costs associated with failed trades while enhancing settlement efficiency.

• Provides an efficient solution enabling the unbundling of clearing from execution.

Value-Added Services for Broker DealersEQUITIES FIXED INCOME

DERIVATIVESDOMESTIC ON-EXCHANGE SETTLEMENT

MTF ON-EXCHANGE SETTLEMENT

DOMESTIC GCM

SERVICES

MTF GCM

SERVICES

ACCOUNT OPERATOR

FAILS COVERAGE

DOMESTIC ON-EXCHANGE SETTLEMENT

MTF/ATS ON-EXCHANGE SETTLEMENT

DOMESTIC GCM

SERVICES

MTF/ATS GCM SERVICES

ACCOUNT OPERATOR

ASIA AUSTRALIA ● ● ● ● ● ● ◣ ◣ ◣ ◣ ● ◣HONG KONG ● ● ● ● ● ◣ ◣ ◣ ◣ ◣ ▲INDIA ◣ ◣ ◥ ◣ ◣ ◣ ◣INDONESIA ◣ ◣ ◣ ◣ ◥ ◣ ◣ ◣ ◣ ◥ ◣JAPAN ● ● ● ● ◣ ● ● ● ◣ ●

MALAYSIA ◣ ◣ ◣ ◣ ● ◣ ◣ ◣ ◣ ◣ ◣ ◣PHILIPPINES ◣ ◣ ◣ ◣ ◥ ◣ ◣ ◣ ◣ ◣ ◣SINGAPORE ● ● ● ● ● ◣ ◣ ◣ ◣ ▲THAILAND ◣ ◣ ◣ ◣ ● ◣ ◣ ◣ ◣ ● ◣

CEEMEA CZECH REPUBLIC ◥ ● ◥ ● ● ● ● ◣ ◣

HUNGARY ● ● ● ● ● ● ● ● ●

ISRAEL ● ◣ ● ◣ ● ●

POLAND ● ◣ ● ◣ ◥ ● ● ● ● ● ◥RUSSIA ● ◣ ◣ ◣ ● ◣ ◣ ◣ ● ◣SLOVAKIA ◣ ◣ ◣ ● ◣ ◣ ◣ ● ◣TURKEY ● ◣ ◣ ◣ ● ● ◣ ● ◣ ● ●

EUROPE AUSTRIA ● ● ● ● ● ● ◣ ◣ ● ◣BELGIUM ● ● ● ● ● ● ● ● ● ● ▲DENMARK ● ● ● ● ● ◣ ◣ ◣ ◣ ● ◣FINLAND ● ● ● ● ● ◣ ◣ ◣ ● ◣FRANCE ● ● ● ● ● ● ● ● ● ● ● ▲GERMANY ● ● ● ● ● ● ● ◣ ● ●

GREECE ● ◣ ● ◣ ◣ ● ● ◣ ◣ ●

ITALY ● ● ● ● ● ● ● ● ● ● ● ▲NETHERLANDS ● ● ● ● ● ● ● ◣ ◣ ● ◣NORWAY ● ● ● ● ◥ ◣ ◣ ◣ ◣ ◣PORTUGAL ● ● ● ● ● ● ● ● ▲SPAIN ● ● ◣ ● ● ● ● ● ● ● ▲SWEDEN ● ● ● ● ● ● ● ◣ ◣ ◣SWITZERLAND ● ● ● ● ● ● ● ◣ ● ◣ ●

UK ● ● ● ● ● ● ● ● ● ● ●

AMERICAS BRAZIL ● ◣ ● ◣ ● ● ◣ ◣ ● ▲CANADA ● ◣ ● ◣ ◥ ◥ ◣ ◣ ◥ ◥MEXICO ● ◣ ● ◣ ● ● ● ◣ ● ◣ ● ●

US ◣ ◣ ◣ ◣ ◥ ◣ ◣ ◣ ◣ ◥ ◥

● Specified value-added service is offered in the country indicated◥ Specified value-added service is targeted to be offered in 2013

▲ Payment bank services only◣ Specified value-added service is currently not applicable in the

country or not permitted under local regulations

2013 Direct Custody & Clearing Global Event Calendar

16-19 SeptemberDubai

SibosThe annual global industry conference will be held in Dubai. Leaders from Citi will be participating in many panel discussions, presentations and hosting client events. We look forward to welcoming you to our stand at the conference.

Client Cocktail Reception17 September 2013 6:00 pm – 10:30 pm

8-9 OctoberLondon

NeMa AfricaCiti is pleased to announce that we will be sponsoring the inaugural NeMa Africa in October 2013.

Following NeMa Europe, NeMa Africa will focus on a fast-developing continent whose banks and infrastructures are rapidly advancing the investment landscape and placing Africa firmly on our network maps as a result.

Matthew Brown, Managing Director, Securities and Fund Services Head, The Middle East and Africa, Citi will be participating on the panel, “How Are Global Regulations Impacting The Wider Africa Region? And What Are The Local Regulatory Drivers For Change?“

11-12 November Bangkok

NeMa AsiaCiti is co-sponsor for NeMa Asia 2013 which will be held in Bangkok over November 11-12. Philippe Dirckx is a key speaker and will lead the panel “Asian Stock Exchanges 2013 And Beyond — What Initiatives Can We Expect To See Next?” Jeff Williams will also be taking the stage as part of a polling panel, “Selective Outsourcing — How Far Up The Chain Is Possible?” Kevin Wong will be hosting the China table during the “Lunch and Country Roundtable” segment.

Citi Viewpoints: Counterparty Risk and the Evolution of Latin American Markets

Let the Good Times RollThe increased attractiveness of Latin America as a core region to invest and diversify holdings is not new to the global asset manager community. The strong performance of exports coupled with sound government balance sheets have fostered positive macroeconomic results, including employment growth, saving rates and persistent strength of commodity prices.

An influx of international players combined with technological advances has allowed the region to grow rapidly. Foreign Direct Investment (FDI) in Latin America and the Caribbean increased more than 7% in 2012,1 with Chile, Colombia and Peru exhibiting the largest gains, while Brazil remains the top investment destination in the region. Such growth sharply contrasts with a drop of more than 30% in FDI into developed countries, according to the latest available estimates.2

Foreign flows into local securities markets have also increased significantly. Foreign investors tripled their holdings in the major LATAM markets from 2002 to 2011.3 Even after the subprime financial crisis, portfolio investment grew more than 22% in the region, with Colombia, Peru and Chile again enjoying the higher absolute rates in the period 2009-2011.4

The increase in volumes invested in the local capital markets has also been the consequence in no small part to the growth of the domestic institutional investor community. Pension funds in Latin America are growing at a 10% to 15% rate,5 thanks to a growing middle-class who is relatively young and benefiting by the positive macroeconomic environment that includes improving salaries, low unemployment and more formalized economies. As a result, the number of participants in these systems continued to increase at a good rate leading to more contributors into local pension funds.

Focus on RiskAs expected, the rapid growth in size and complexity has asset managers increasingly worried about risk in Latin America. While Lehman Brothers and MF Global may have received greater attention worldwide, the failure of Interbolsa in Colombia, and the fallout from the Mexican flash crash have shifted the focus onto risk in the region. Risk has many dimensions, but understanding counterparty risk is perhaps the top priority on the agenda for most managers. At the same time, Latin American capital markets are far from being homogeneous, and understanding the exposure still poses a

A favorable economic backdrop has fostered growth in Latin American markets, resulting in improved foreign direct investment, and a growing asset management industry. As the industry grows, Central Counterparties (CCPs) are becoming more critical in ensuring liquid markets while reducing systemic risk.

1United Nations Conference on Trade and Development, Global Investment Trends Monitor Number 11, 23 January 2013 - http://unctad.org/en/PublicationsLibrary/webdiaeia2013d1_en.pdf2IMF: Coordinated Portfolio Investment Survey –CPIS- http://elibrary-data.imf.org3Ibid4SAFP Chile, SAFP Peru, SFC Colombia, Consar Mexico, Abrapp Brazil5Ibid

challenge, as these risks vary greatly depending on investment instruments and transaction types in each jurisdiction.

Better management of counterparty risk usually involves operating with CCPs and Clearinghouses, with the ability to centralize netting and manage defaults that might arise. The centralization of information and the standardization of transactions are seen as major advantages of CCPs. In this approach, credit risk is reduced as settlement of instructions and movement of funds is guaranteed. Hence, risk of non-fulfillment of a trade is mitigated. In the globally recognized model, the CCP holds assets in a manner whereby risk of loss is minimized through use of a custodian — either a central securities depository or a financial institution — that has in place the mechanisms to regularly review its service levels and operational reliability. Furthermore, assets held in custody should be protected against claims of a custodian’s creditors, through appropriate accounting practices, safekeeping procedures and internal controls.6

While acknowledging the benefits of the use of CCPs, not all markets operate through these kinds of centralized structures. Furthermore, fragmentation of operations in different exchanges and markets creates the necessity of additional risk mitigation techniques, such as book entry transfers within “high market share” financial institutions and promoting the use of pre-matching instructions with market counterparties (street-side transactions).

An illustration of the regular market functioning in Latin America shows a number of components to consider when counterparty risk is taken into account, as different local payment systems present inherent segmentation.

In certain markets, the Central Securities Depository (CSD) does not act as a central counterparty, so it does not guarantee settlement of transactions. This is highly important in countries where OTC markets are the most liquid, such as fixed income trading in Argentina. The transactions between agents are guaranteed only and exclusively by the total net worth of each participant. Any claim due to a default event will require court intervention or a new agreement between the buyer and the seller of the securities to complete the transaction.

Similarly, fixed income securities in Brazil and Mexico are generally traded OTC. On the other hand, both equity and fixed income securities traded in Peru and Colombia are settled through their respective CSDs without CCP participation.

On the other hand, examples of depositories acting as CCPs can be found in equity-related operations, where trades are guaranteed in order to reduce settlement and default risks between local brokers. Indeval, the CSD in Mexico, offers a true delivery versus payment (DVP) environment for stock exchange transactions, as these are guaranteed by the CCP, eliminating the principal risk of delivering

Citi Viewpoints: Counterparty Risk and the Evolution of Latin American Markets (cont.)

6Bank for International Settlements and International Organization of Securities Commissions, Recommendations for Central Counterparties Report.

securities without receiving cash simultaneously. In this case, a Financial Safeguard System that includes a Contribution Fund, Compensation Fund and Reserve Fund requires each broker to make contributions in accordance with their value-at-risk (VaR). The Contribution Fund covers all the transactions made on the Bolsa Mexicana de Valores (Mexican Stock Exchange), calculated with a historical VaR methodology. The Compensation Fund is used to cover unexpected losses (the loss is mutualized), and Clearing Members are required to make daily contributions to the Funds based on their VaR. Contributions are segregated by member and the contribution of the defaulting member is used first. If this amount is unable to cover the loss, the Reserve Fund consisting of the CCP’s capital is utilized.

Likewise, the Companhia Brasileira de Liquidação e Custódia — the Brazilian clearinghouse and depository for trades executed on BM&FBOVESPA — acts as CCP under the equities division. Clearing member participants such as banks, brokers and dealers must comply with minimum capital requirements and operational/technological standards. In mitigating the settlement risk originating from the default of a participant, the CCP considers several factors, such as risk exposure assessed by the portfolio concept, stress testing, individual margin requirements, liquidity and credit lines, intraday risk evaluation capacity and margin calls. For mitigating the risk that exceeds the individual safety network, the central counterparty adopts a settlement fund and, if necessary, its own capital.

In Chile, although the local Central Securities Depositary does not act as a CCP, a Central Counterparty (Contraparte Central de Liquidacion de Valores - CCLV) was implemented in 2010 for equities and derivatives markets. In this sense, the CCP establishes guarantee funds based on clearing member's market

participation, setting fines and penalties for local brokers that do not comply in a timely manner with securities and liquidity to achieve settlement of transactions. CCLV also incorporates scenarios for high volatility periods, such as the 2007 Subprime Financial Crisis.

Similarly, Argentinean participants operate with a CCP only through Merval, the Argentine stock market (Merval). In this case, Merval is responsible for ensuring that all trades settle and will provide either securities or cash in the event that one of its members defaults. Hence, Merval acts as counterparty of all guaranteed operations and each participant has a unique right (or obligation) with Merval for the security traded. As with other CCPs, Merval utilizes a Guarantee Fund and a Separate Special Fund to guarantee the delivery of cash and securities to stockbrokers’ and brokerage firms’ customers.

Ensuring a Stable FutureAs outlined above, there is a great diversity of local structures and participants operating in Latin America capital markets, for which additional care is needed. Preventive measures that help eliminate or reduce at least some degree of existing counterparty risk should be encouraged, while guidance from market participants is a valuable asset to incorporate in risk management activities. In such an environment, continuous vigilance is indispensable.

Citi Viewpoints: Counterparty Risk and the Evolution of Latin American Markets (cont.)

What’s New Across the Globe highlights changes in selected markets for each publication date. The market information indicated here is a snapshot of the changes that have taken place since the market was last covered in Market Access.

What’s New In The Americas

What’s New in Mexico

What’s New What’s the Impact?

Market Participation

• Actively engaged with other market participants in promoting securities lending and fail coverage services.

• Increases securities lending activity in the market and minimizes potential losses due to failed delivery transactions.

• Working with the Central Bank and the Mexican Bank Association to implement a mandatory payment format for all market participants, which would include: for further credit information as well as originator and final beneficiary details. (Q1 2014)

• Improves Straight-Through-Processing (STP) for clients.

Client Solutions

• Implemented the ability to shadow post securities lending transactions in order to segregate on-loan positions and reflect available and non-available positions in the SWIFT MT 535 Statement of Holdings and in the MT 54X Settlement Confirmations sent to clients. (August 2013)

• Increases operational efficiency for clients.

• Enhanced the SWIFT MT 564 and MT 566 messages for fixed income interest payments to include the gross, tax and net amounts. (July 2013)

• Provides for improved reporting and STP for clients.

• Automating the processing of Foreign Exchange (FX) transactions. (Q4 2013) • Allows for a complete STP solution from settlement instruction and payment processing through to reporting via SWIFT MT 300.

What’s New in Peru

• Working closely with the Ministry of Economics and Finance and the central securities depository, CAVALI, to implement a versus-payment settlement process for Sovereign Bonds. (September 2013)

• Increases market efficiency and reduces settlement risk for clients.

• Actively engaged with the central securities depository to allow local custodians to act as direct participants in the settlement of both funds and securities directly within CAVALI, replacing the current process whereby funds settle directly with the local executing brokers through interbank payments. (March 2014)

• Reduces counterparty risk for clients.

Client Solutions

• Automating the settlement process with CAVALI for securities sale transactions. (Q3 2013)

• Improves settlement efficiency and reduces risks associated with manual processing.

• Working with CAVALI to automate the pre-match process with local brokers. (Q3 2013)

• Provides for more timely pre-matching information and mitigates the risk of failed transactions for clients.

What’s New in United States

• Catalyst for the Depository Trust Company’s (DTC) settlement finality initiative, “Match-to-Settle,” to ensure settlement is irrevocable. (Q4 2014)

• Reduces treasury, credit and counterparty risk in excess of 4 billion USD per day and increases operational efficiency for clients.

• Initiated efforts with DTC to significantly reduce the post-payable income reversal timeframe from 12 months to 3 months. (Q1 2015)

• Provides for a substantial increase in cash flow certainty and reduces the amount of debits resulting from reversals, enabling better investment decisions for clients.

• Working closely with market infrastructures and industry participants to define a strategy to reduce the settlement cycle from T+3 to T+2 or T+1. (Not before 2017)

• Reduces counterparty risk exposure, provides for quicker access to capital and liquidity, timelier resolution of potential fails and increased market efficiency.

Client Solutions

• Implementing a comprehensive plan (including operational and technological changes) for FATCA (Foreign Account Tax Compliance Act), aimed at improving tax compliance involving foreign financial assets and offshore accounts. (Q3 2014)

• Facilitates compliance with major IRS tax regulation.

• Launching Account Operator Services which allows clients to have their own depository participant account at the DTC while Citi operates the account on their behalf. (Q3 2013)

• Enables clients to have a direct market presence while reducing operating costs.

• Enhancing derivatives service by automating the processing of covered calls and introducing processing capabilities for covered puts. (Q4 2013)

• Allows for additional investment options, increases efficiency in collateral management, reduces risk and enhances cut-off times for clients.

What’s New In Europe, Middle East and Africa

What’s New in Israel

• Leading the development and testing for the central securities depository’s initiative to introduce SWIFT communications with local Clearing House members. (Q4 2013)

• Increases overall market efficiency, reduces risks associated with manual intervention and provides for enhanced reporting to clients.

• Actively involved with the Israel Tax Authority and the TASE Clearing House to develop the operational and technical capabilities for tax withholding by custodians instead of issuers. (January 2013)

• Reduces the application of incorrect tax rates arising from late delivery of securities and associated market claims.

Client Solutions

• Introduced further automation and a number of enhancements to corporate action messaging. (June 2013)

• Provides clients with more timely, accurate and robust reporting.

What’s New in Italy

• Actively engaged in shaping the development of Target2-Securities (T2S) by participating in the European Central Bank’s Advisory Group, its sub-groups and local National User Groups as well as the European Banking Federation and local market associations. (Q2 2015)

• Reinforces Citi’s position as competitive pan-European settlement agent.

• Working with the central securities depository to implement a T+2 settlement cycle. (January 2015).

• Increases settlement efficiency and reduces risk for clients.

• Participated with the Tax Authority and other market participants with regard to a new Italian Financial Transaction Tax introduced on cash equities on March 1, 2013 and September 1, 2013 for equities derivatives with the first pay date to be on October 16, 2013.

• Provides for more direct influence to represent the interests of clients and facilitates compliance with the new tax legislation.

Client Solutions

• Working with market participants to benefit from the introduction of a new matching field (live Q3 2012), bilateral cancellation (live Q4 2012) and hold and release functionality (to go live September 2013), which, when populated by clients in their settlement instructions, will prevent settlement mismatches and eliminate the need to manually pre-match via telephone.

• Increases operational efficiency and reduces risk for clients.

• Rolling out a fully automated tri-party securities lending solution. (Q4 2013) • Enables client to fully leverage their portfolio and improve their liquidity management.

• Implemented the capability to support clients with regard to acting as their contingency provider for custodial services. (Q2 2013)

• Supports client needs in establishing a more robust continuity of business arrangement.

What’s New in Spain

• Active participant in various working groups of Target-2 Securities (T2S). (2017) • Provides more direct influence to represent the interests of clients.

• Actively involved in the technical committee which will establish a Central Counterparty (CCP) in the local market. (2015)

• Increases settlement efficiency and reduces risk for clients.

• Participating in the Corporate Actions Committee of the Spanish Banking Association to harmonize corporate action events with the rest of Europe and in line with the requirements of T2S. (2015)

• Increases market efficiency and brings corporate action events in line with global best practices and standards.

Client Solutions

• Created customized securities position report for fixed income activity, which can be sent via e-mail in addition to the standard SWIFT reporting. (June 2013)

• Provides for more timely and enhanced reporting and increases operational efficiency for clients.

• In line with the new regulation of the central securities depository (Iberclear) whereby stock exchange members no longer need to be Iberclear participants, Citi is working closely with the BME (operator of all stock markets and financial systems) to act as settlement agent for clients which are members of any of the four stock exchanges which do not want to be direct members in Iberclear. (September 2013)

• Eliminates the need for clients to establish direct membership in the central securities depository and make infrastructure investments required to facilitate the settlement of on-exchange trades.

What’s New in Switzerland

• Actively participating in the Target2-Securities (T2S) SIX SIS Working Group meetings and representing the Association of Foreign Banks in Switzerland on the National User Group Committee. (June 2015)

• Provides more direct influence to represent the interests of clients.

Client Solutions

• Migrated to Citi’s new securities billing system effective June 2013. • Provides for more flexibility in generating invoices to clients.

• Launched AutoFX Services for settlement, income and corporate action activity. (December 2012)

• Allows for a complete STP solution from settlement instruction and payment processing through to reporting via SWIFT MT 300 confirmations or other types of automated reporting for clients.

What’s New in Turkey

• Led efforts with the Central Registry Agency (CRA) for the introduction of an e-voting platform for general assembly meetings, which resulted in reduced proxy documentation and the elimination of the share blockage requirement. (October 2012)

• Simplifies the proxy voting process for clients.

• Working closely with the Capital Markets Board for secondary regulations related to foreign portfolio investments further to the new Capital Markets Law that was enacted in December 2012.

• Ensures the best interests of clients are represented and provides for a regulatory framework in line with international best practices.

• Successfully concluded the migration of the Central Bank of Turkey (CBoT)’s local currency payment and securities clearing systems to a web-based platform. (July 2013)

• Increases operational efficiency with regard to local currency and fixed income securities transfers.

Client Solutions

• Led efforts with the CRA to implement an auto pre-matching facility for free-of-payment transactions (to replace pre-matching via telephone), and developed the relevant system capabilities to support. (May 2013)

• Eliminates risks associated with manual processing and provides for more timelier pre-matching information to clients.

• Enhanced the SWIFT MT 910 cash messages for incoming funds to include “Ordering Customer” and “Intermediary” fields. (June 2013)

• Increases straight-through-processing (STP) and allows clients to better monitor their incoming funds.

• Improved the SWIFT MT 564 and MT 566 messages for dividend payments to include tax rate information in addition to gross and net rates in the relevant fields. (July 2013)

• Provides for enhanced reporting and increases operational efficiency for clients.

What’s New In Asia Pacific

What’s New in Hong Kong

• First custodian actively engaged with the central securities depository (CSD) to eliminate the requirement for a Participating Dealer (PD) of an Exchange Traded Fund (ETF) to have a participant account at the CSD. (Q4 2013)

• Enables a PD of an ETF to outsource their settlement to a General Clearing Participant (GCP) of the CSD.

• Working closely with the regulator on an initiative in which Recognized Hong Kong and Mainland funds may be sold directly in the other market. (Q2 2014)

• Promotes additional investment opportunities in Hong Kong for foreign investors.

Client Solutions

• Implemented a market-leading solution for ETFs to include Citi Global Markets’ Participating Dealer and Market Making services with Securities and Fund Services providing Trustee, Fund Accounting and Custody. (Q3 2012)

• Offers an end-to-end solution to clients with regard to ETFs.

• Implementing the ability for clients to use their cash balances in Hong Kong (leveraging the country’s favorable regulatory environment) to fund their settlement obligations in Malaysia, Philippines and Taiwan. (Q3 2013)

• Offers a centralized solution and simplifies the funding process for clients for several markets in Asia.

What’s New in India

• Key member of the Foreign Investment Committee set up by the regulator (SEBI) for recommendations towards an integrated policy framework for foreign investors and simplification of Know-Your-Customer policies. (Q4 2013)

• Simplifies market entry requirements for foreign investors and provides for quicker time to market.

• Working closely with market participants and SWIFT for the usage of formatted messages for Initial Public Offerings, Offers for Sale and mutual fund transactions.

• Increases straight-through-processing (STP) and operational efficiency.

• Actively engaged with regulators and exchanges to enable Foreign Institutional Investors (FIIs) to place alternative collateral forms as margin across cash equities, equity derivatives and Securities Lending and Borrowing segments.

• Increases operational efficiency and reduces costs for clients.

Client Solutions

• First custodian bank in the market to offer securities lending services. (Q4 2012) • Enables foreign investors to maximize returns on their portfolios and reduces fails on securities settlements.

• Launched a comprehensive service for Qualified Foreign Investors (QFIs) to include trade order management, custody and asset servicing. (Q1 2013)

• Provides an end-to-end solution and facilitates market entry for QFIs.

What’s New in Indonesia

• Actively participating in the working group established to provide recommendations to the regulator on the implementation of a General Clearing Membership (GCM) mechanism.

• Enables clients which are stock exchange members to utilize a third party for connectivity and membership to the central securities depository and clearing activities.

• Actively involved in the working group which is preparing the Country Addendum to the Global Repurchase Agreement. (Q3 2013)

• Offers increased protections to foreign investors participating in Repo transactions.

Client Solutions

• Enhanced systems to allow for real-time connectivity and straight-through-processing (STP) with the central depository, KSEI. (Q2 2013)

• Provides for reduced instruction cut-off times and earlier reporting for clients.

• Enhanced corporate action service to provide notifications to clients on the same day as the announcement date in addition to implementing reminder notifications for voluntary events. (Q2 2013)

• Offers a more robust corporate action service with earlier notifications and facilitates clients in providing timely instructions on voluntary events.

• Implemented the ability to provide reminders to clients with regard to the expiration date of tax treaty application form (DGT) to allow foreign investors to benefit from relief at source. (Q2 2013)

• Facilitates clients in renewing documentation in order to continue receiving tax treaty benefits.

What’s New in Japan

• Participating in the working groups of the central securities depository (CSD) and ISITC for the implementation of a tolerance limit in the Pre-Settlement Matching System operated by the CSD. (January 2014)

• Increases operational efficiency and reduces risk for failed transactions.

• Working with the CSD (JASDEC) on the ISO 20022 sub-committee for the implementation of a new system which will be compliant with the new messaging standards. (January 2014)

• Improves operational efficiency in line with international standards.

Client Solutions

• Implemented the ability to offer third-party clearing services for OSE-listed Derivatives. (July 2013)

• Offers clearing services for all listed stock indexes for clients which are trading participants in the local exchange.

• Preparing to be one of the initial participants to the new Stock Lending DVP/RVP system of JASDEC. (January 2014)

• Allows for third-party clearing services to local brokers that engage in securities borrowing and lending transactions .

Country Contacts

ARGENTINA AUSTRALIA AUSTRIA BAHRAIN

Raul Paterno54-11-4329-1463

raul.paterno@citi.com

Martin Carpenter612-8225-2411

martin.carpenter@citi.com

Dirk Loscher4969.1366.2216

dirk.loscher@citi.com

Abdulla Aljanahi971-4604-4453

abdulla.aljanahi@citi.com

BANGLADESH BELGIUM BRAZIL CANADA

Nadia Mariam8802-883-3567 ext. 1212

nadia.mariam@citi.com

Warren Thorsen31-76-543-8263

warren.thorsen@citi.com

Marcio Veronese5511-4009-2751

marcio.veronese@citi.com

Ajmal Asif416-947-5444

ajmal.asif@citi.com

CHILE CHINA COLOMBIA CYPRUS

Antonio D Blazquez562-338-8530

ablazquez@citi.com

Kevin Wong8621-2896-6705

kevin.sc.wong@citi.com

Armanda Mago Vicentelli571-487-6967

armanda.mago@citi.com

Menelaos Demetriou30210-329-2160

menelaos.demetriou@citi.com

CZECH REPUBLIC EGYPT FRANCE GERMANY

Jaromir Javurek4202-3306-1375

jaromir.javurek@citi.com

Mona El Shafei2022-791-0640

mona.elshafei@citi.com

Fabrice Novel331-7075-2166

fabrice.novel@citi.com

Dirk Loscher4969.1366.2216

dirk.loscher@citi.com

Country Contacts

GREECE HONG KONG HUNGARY INDIA

Menelaos Demetriou30210-329-2160

menelaos.demetriou@citi.com

Cindy Chen852-3419-8820

cindy.t.chen@citi.com

Hajnalka Bor361-374-5118

hajnalka.bor@citi.com

Aashish Mishra9122-6175-7100

aashish.k.mishra@citi.com

INDONESIA IRELAND ISRAEL ITALY

Daniel Wijono6221-5290-8956

daniel.wijono@citi.com

Peter Stewart44-207-500-2959

peter.a.stewart@citi.com

David Levy9723-684-2732

david1.levy@citi.com

Franco Carulli3902-8906-4580

franco.carulli@citi.com

JAPAN KAZAKHSTAN KOREA KUWAIT

Yasuhiro Yanakawa81-3-6270-9534

yasuhiro.yanakawa@citi.com

Anara Butina7727-298-0907

anara.butina@citi.com

Hee-Jin Kim822-2077-43913

heejin.kim@citi.com

Fahad Al Saif9652-2594-041

fahad.alsaif@citi.com

MALAYSIA MEXICO MOROCCO NETHERLANDS

Benedict Ler603-2383-2638

benedict.ler@citi.com

Adrian Garza52-55-2262-9586

Adrian.garza@citi.com

Asmaa Hallouty212-224-89606

asmaa.hallouty@citi.com

Elly Van As3120-651-4458

elly.van.as@citi.com

Country Contacts

NEW ZEALAND NIGERIA PAKISTAN PANAMA

Martin Carpenter612-8225-2411

martin.carpenter@citi.com

Kemi Adewole2341-279-8573

kemi.adewole@citi.com

Faraz Hussain9221-3227-3482

faraz.hussain@citi.com

Omar Rashid507-210-5925

omar.rashid@citi.com

PERU PHILIPPINES POLAND PORTUGAL

Diego Castro511-215-2189

diego.r.castro@citi.com

Theresa Reyes632-894-7235

Theresa.reyes@citi.com

Artur Binkiewicz48-22-657-7600

artur.binkiewicz@citi.com

Giselle Toloi3512-1311-6352

giselle.toloi@citi.com

PUERTO RICO ROMANIA RUSSIA SINGAPORE

Fernando Guzman1-787-766-2121

fernando.guzman@citi.com

Cristian Agalopol40-21-203-5215

cristian.agalopol@citi.com

Larisa Gorbacheva7495-643-1474

larisa.gorbacheva@citi.com

Alvin Goh65-6657-5008

alvin.nc.goh@citi.com

SLOVAKIA SOUTH AFRICA SPAIN SRI LANKA

Jaromir Javurek4202-3306-1375

jaromir.javurek@citi.com

Irma Calitz2711-944-0310

irma.calitz@citi.com

Rafael Gonzalez-Aller34-91-538-4238

rafael.gonzalezaller@citi.com

Mihiri Krishnamoorthy94 114 794 728

mihiri.krishnamoorthy@citi.com

Country Contacts

SWEDEN SWITZERLAND TAIWAN THAILAND

Ola Mjorud46-87-23-34-67

ola.mjorud@citi.com

Maike Bechtel4969-1366-1349

maike.bechtel@citi.com

Hsiao-Chi Wang8862-8726-9222

hsiaochi.wang@citi.com

Dol Watanasri662-788-2679

dol.watanasri@citi.com

TURKEY UKRAINEUNITED ARAB EMIRATES

UNITED KINGDOM

Gunsel Topbas90-212-319-4360

gunsel.topbas@citi.com

Olesia Piatchanina38-044-499-2714

olesia.piatchanina@citi.com

Azhar Khan971-4604-4438

azhar.kahn@citi.com

Peter Stewart44-207-500-2959

peter.a.stewart@citi.com

UNITED STATES VENEZUELA VIETNAM

Deborah Mercer-Miller212-816-6861

deborah.mercer-miller@citi.com

Noraily Bello5822-705-2228

noraily.bello@citi.com

Ha Thu Nguyen8443-936-7889

hathu.nguyen@citi.com

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