ABN AMRO's Broker/Dealer Affiliate in Mexico appoints Citibank to Manage Clearance and Settlement.Business Editors NEW YORK--(BUSINESS WIRE)--June 22, 2000 First Time Mexican Authorities Have Permitted Broker/Dealer to Outsource On-Exchange Trade Clearing and Settlement to an Agent Bank ABN AMRO's locally licensed broker/dealer in Mexico today announced that it has appointed Citibank Worldwide Securities Services, a division of Citigroup's Global Corporate Investment Bank, as clearance and settlement agent for ABN AMRO ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) Securities (Mexico) SA de CV, Casa de Bolsa. ABN AMRO recently became a new member of the Mexican Stock Exchange Mexican Stock Exchange The only stock exchange in Mexico. The Indice de Precios y Cotizaciones, or IPC index, consists of the 35 most representative stocks chosen every two months. as part of its expansion in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . The appointment marks the first time Mexican authorities have permitted a broker/dealer to outsource the clearance and settlement of on-exchange trades to a third party. Previously, locally licensed broker/dealers were responsible for their own custody and clearance. As ABN AMRO's clearance and settlement agent for equities, Citibank will maintain the connection to the depository (Indeval) including: monitoring, pre-match instruction, cash and securities reconciliation, post-trade confirmation and provision of contingency sites. "We are pleased to be able to leverage this type of a small office solution for a very important piece of our Latin product. This allows ABN AMRO to establish a local presence in Mexico with the scale and capability to offer a best-in-class service to our clients while mitigating settlement exposure and reducing risk," said Barry Zucker, Managing Director and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. for Latin America at ABN AMRO. "By establishing this unprecedented relationship with Citibank Worldwide Securities Services we're afforded a quick start-up and smooth implementation." There are a number of additional advantages to a broker/dealer who outsources its clearance and settlement activities particularly: the ability to have scalable capacity to service clients better, shifting the cost base from fixed to variable, and the service reliability of a clearance and settlement specialist. "We're delighted to pioneer with ABN AMRO this new outsourcing model in Mexico, said Manuel de la Vega de la Vega is a common surname in the Spanish language meaning "of the plain" and may refer to: People (arranged by date of birth)
Netherlands-based ABN AMRO Bank N.V. is one of the world's ten largest banks with total assets of $460 billion and more than 3,500 locations in 76 countries and territories. In North America, ABN AMRO is headquartered in Chicago and has $167 billion in assets and more than 19,000 employees with banking offices in 15 cities in the U.S., Canada and Mexico. Major North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. affiliates include ABN AMRO Incorporated, an investment banking, advisory and brokerage firm; ABN AMRO Asset Management (USA) Inc.; LaSalle Bank in Chicago, Standard Federal Bank in Michigan and EAB EAB Emerald Ash Borer (insect) EAB Environmental Appeals Board (EPA) EAB Educational Activities Board (IEEE) EAB Environmental Advisory Board EAB Egyptian American Bank in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Citibank Worldwide Securities Services (WWSS WWSS Worldwide Satellite Systems (US DoD contract vehicle) WWSS Warfare and Warfare Support System ) 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 countries. It currently provides securities services to more than 2,500 customers worldwide and has $4 trillion in assets under custody. WWSS is the industry's premier custodian of cross-border assets; top ranked global clearer and recognized leader in depositary receipt depositary receipt A negotiable certificate that represents a company's publicly traded debt or equity. Depositary receipts are created when a company's shares or bonds are delivered to a depositary's custodian bank, which instructs the depositary to issue services, and agency and trust services. The local presence of WWSS, supported globally by Regional Service Centers, ensures clients of consistent transaction processing worldwide, proprietary control of clearing cycles and reduced risk in all cross-border securities transactions. Citigroup (NYSE NYSE See: New York Stock Exchange :C), the most global financial services company, provides some 100 million consumers, corporations, governments and institutions in 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, Commercial Credit and Primerica under Citigroup's trademark red umbrella. Additional information can be found at: http://www.citi.com. |
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