SEPTEMBER
2 0 0 4
|
N e w s l e t t e r
SEPTEMBER
2 0 0 4 |
 |
|
|
Welcome to the Citibank® Global Clearing Services newsletter, a quarterly publication designed to deliver the latest global clearing product and industry updates. Citi provides superior payment processing, a comprehensive array of coordinated solutions and flexible delivery options. As part of Citi® Global Transaction Services – a leading provider of cash management, trade, securities and fund services to financial institutions and corporations around the world – we are well positioned to serve our clients anywhere they do business. We hope you enjoy the second edition of our newsletter and encourage you to contact us with your feedback and questions by visiting our Citibank Global Clearing Services Web site. To learn more about Citi Global Transaction Services and its wide range of capabilities and solutions, visit www.transactionservices.Citi.com
Have you heard about the SWIFTNet revolution? SWIFTNet, a virtual private network (VPN) that is secured by SWIFT™, offers multiple means of messaging. Leveraging Internet standards to deliver transactions and data ranging from traditional FIN to applications and file transmission, SWIFTNet greatly expands secure communications between institutions.
Did you know that Citi offers flexible options in its beneficiary deduct service? Such options can more effectively align your institution’s payment pricing policies to satisfy your clients. Beneficiary deduct services offered through Citi enable customers to subtract processing fees from payment principal. The service can be applied to both outbound (debit) and inbound (credit) payments, as well as commercial and trade payments. With our flexible and customized charging options, we work with you to design programs based on specific payment profiles whereby sensitive payments can be handled according to your standing instructions. Here are the commonly used options to choose from: Tiered Deductions based on the principal of each payment Minimum Value criterion to exclude low value payments Transaction Type Deductions to allow different deductions for MT103s and MT202s Transaction Reference and Codeword Deductions using predefined alpha-numeric sequences and/or predetermined codewords in Field:72: to trigger deductions Fee Limits specifying floor and ceiling fee deductions to ensure that the deduction meets minimum and maximum deduction criteria Destination Deductions based on the destination (country) of the beneficiary’s bank Originating Party Deductions based on originator of the payment Credit Party Deductions based on beneficiary of the payment We are expanding these capabilities beyond USD processing in New York to other currencies, such as EUR, SFR and GBP in Europe. We currently offer beneficiary deduct tiering and value criteria services for JPY in Tokyo. For more information and present currency capability, please contact your sales representative. Have you considered utilizing Continuous Linked Settlement (CLS®) payments to enhance your foreign exchange risk management program and reduce foreign exchange processing costs? Over $2.5 trillion flows through global foreign exchange daily. The traditional foreign exchange process settles the two sides of a trade at different times, based on the affiliated domestic payment system. This payment time gap creates settlement risk – which can be effectively reduced with a payment versus payment settlement. In fall 2002, CLS Bank International launched a foreign exchange payment versus payment settlement clearing system. As of March 2004, a total of 56 member banks (including over 284 participants) were settling payment instructions associated with foreign exchange trades through CLS Bank. As volumes and participation continue to grow, CLS Bank estimates that it settles more than 130,000 instructions each day with an average daily value of US $1.4 trillion. It is further estimated that these shareholders are responsible for more than 56% of all foreign exchange volumes executed among participating major currencies. CLS went live with seven currencies: AUD, JPY, GBP, CHF, EUR, USD and CAD. Four more currencies were added in September 2003: NOK, DEK, SEK, and SGD. CLS is proposing to increase to fifteen currencies by late 2004 adding: HKD, NZD, ZAR and KRW. For more information see the CLS Web site at http://www.cls-group.com/ Citi is a market leader in providing CLS Settlement Services for third parties, ranking first in live customers (23% market share April 2004), which include numerous high-volume foreign exchange players. With Citibank® CLS® Settlement Services we have built a bridge to link traditional correspondent banking with the future of Internet-based clearing networks. Citibank CLS Settlement Services provides a host of value-added features, including: · Integrated matching and reconciliation services As a leader in foreign exchange and payment services, Citi has the capabilities to assist clients in their migration to the new CLS settlement process. For more information about Citibank CLS Settlement Services, please visit our Web site.
Did you know Citi has one of the widest physical operation footprints in Europe and is enhancing its Euro clearing and feature capabilities? EUR Repair Analysis: Citi uses processing systems to correct payment messages, supported by operators to repair the messages which computers cannot. To help us determine what repetitive issues cause the need for repairs, one of the most powerful tools we have are Repair Analysis Reports. Based on your request, Citi customer service representatives will prepare reports of your message activity that highlight transactions requiring repair, including the reasons for the repair. By correcting errors, these payment types can be processed in the future with no intervention, lowering your repair charges and enhancing your straight-through processing. EUR Claims for Charge OUR Fees: Citi heard concern from our correspondent partners that we should honor more claims for OUR charges. We have reviewed our policies and are now covering a greater portion of the claims made. In addition, we’ve also begun sending responses to all claims describing the new policy so you, our correspondents, can manage your fee claims more effectively. EUR Same Day Amendments and Cancellations: To ensure prompt action on your amendment and cancellation requests, please send them via SWIFT™ MT192, Request for Cancellation. We will prioritize processing and give you information about the resulting action within 24 hours. We strongly encourage you to use MT192s, not MT199s. The MT199 message cannot receive the priority you deserve when you have an urgent cancellation or amendment need since it is not a specific message relating to amendments and cancellations. To further ensure prompt action on your requests, we ask that you call your customer service representative to alert us to the urgency of your need so we can monitor traffic for your incoming messages. We plan to continue adding new Euro features and you will be hearing more from Citi this year about EUR capabilities and enhancements. Do you need to make payments in currencies infrequently used, such as to an emerging market country? Citibank operates in 100 countries and is able to leverage this coverage for your benefit depending on your needs. If you have larger volumes in one or more of our supported currencies, a local currency account at the Citibank branch in that country may be your best solution. You can access your account via SWIFT™ or CitiDirect® Online Banking, and receive the same excellent service as with your existing US dollar or Euro account with us. To set up an emerging market clearing account, simply contact your Citibank sales representative. If your transaction volumes are mainly foreign currency outflows (debits) and checks and wish to lower costs, opening accounts may not be the best answer. For such cases, Citi offers a non-account based alternative. WorldLink® Multicurrency Transaction Services provides a standard process for making foreign currency payments in over 100 currencies in a variety of payment options. We accept payment instructions via both SWIFT™ and via CitiDirect® Online Banking platforms. In either case it can be easily activated for you. For more information, please visit the WorldLink® Multicurrency Transaction Services Web site: http://www.worldlink.com Finally, for low transaction volumes in a particular emerging markets currency, you can transmit these as foreign exchange transactions without opening accounts specific to a given currency. Simply send such payments to your existing US dollar account at Citibank NA, New York as a cost effective alternative. In order to be initiated, foreign currency payments need to be sent to the SWIFT code CITIUS33DFU. Simply specify the three digit international currency code in Field 32A. Upon receipt by the 4 PM EST cut-off time, we process the foreign exchange payment with two-day spot value. You may also send such payments as charge beneficiary. Citi uses its customer interbank rate and charges you via your US dollar account billing. For pricing and further details, contact your sales representative. |
||||||||||||||||||||
|
