Citi Launches ESG-Focused Multi-Currency Notional Pooling

With this launch, Citi now offers notional pooling solutions in 11 locations around the world.

Citi has launched multi-currency notional pooling (MCNP) with an integrated ESG offering in Luxembourg.

Clients will be able to harness automated ESG investments options and wider liquidity management capabilities, including target balancing, multi-bank target balancing, cross-currency sweeps, and virtual accounts to meet their Treasury objectives.

Citi’s ESG offering has been expanded by fully integrating notional pooling with a new range of ESG Money Market Fund options in Luxembourg.

This allows Citi’s clients to participate in sustainable short-time investments and automate their ESG initiatives end-to-end thanks to an automated sweep from Luxembourg-based accounts combined with enhanced treasury workstation integration.

Stephen Randall, Global Head of Liquidity Management Services, Treasury and Trade Solutions, Citi, said: “As companies seek ways to expand their ESG programs, treasury departments are playing a greater role in shaping and achieving these objectives. With companies continuing to face volatility in their supply chains and cross-border business activities triggered by the Covid pandemic, Citi is actively expanding solutions to enable clients seeking to achieve both treasury and corporate sustainability objectives in an integrated manner.”

Czeslaw Piasek, EMEA Head of Liquidity Management Services, Treasury and Trade Solutions, Citi commented: “Luxembourg is an important treasury location for our multinational client base. The launch of our integrated multi-currency notional pooling capabilities and ESG offering there reflects Citi’s strategy to continuously expand its cash management capabilities in Europe, serving clients through its physical presence across 24 countries and seamless connectivity to Citi’s global network.”

The new multi-currency notional pooling offering in Luxembourg supports all major global currencies and provides comprehensive reporting for tracking exposures, monitoring pool entities, and reconciling financial benefits for clients in multiple pooling centers across the world.

Citi has recently been hit with a $1 million fine by the US CFTC to resolve federal court charges for alleged violations of swap data reporting.

The regulator ordered the penalty after finding Citibank NA and its international broker-dealer affiliate Citigroup Global Markets Ltd. failed to report key identifying data for tens of thousands of swaps.

After being charged with these violations in 2017 and settling with the CFTC, Citi failed again to report LEIs for numerous swaps up until November 2019 as a result of design flaws in its data reporting systems.

The financial watchdog considered that Citi’s supervision failures reflect “a reduction in recognition of Citi’s substantial cooperation with the Division of Enforcement’s investigation and proactive remediation.”

“As this case demonstrates, the CFTC will vigorously pursue swap dealer registrants that fail to meet their reporting obligations and violate CFTC orders. Accurate swap data reporting is essential to fulfillment of the CFTC’s regulatory mandates, including monitoring systemic risk and preventing market abuse,” said Acting Director of Enforcement Vincent McGonagle.