Robeco and Citi Complete Centrally-Cleared Inflation Swap

LONDON--(BUSINESS WIRE)-- Citi has supported asset manager Robeco in completing the first centrally cleared inflation swap ever processed on behalf of a continental European buy-side client. The swap was cleared through LCH.Clearnet’s SwapClear which, in April of this year, was the first CCP to launch clearing for inflation-linked swaps.

The option to centrally clear inflation-linked swaps is an important milestone in the further growth of the cleared derivatives market as asset managers and pension funds in particular continuously look for efficient ways to hedge their portfolios and / or liabilities against rising inflation. By clearing these instruments, investors can avoid market fragmentation and gain significant netting advantages.

Commenting on the transaction, Peter van der Spek, Director, Customized Overlay Management, Robeco said: “We are happy that in partnership with Citi we have now completed our first centrally cleared inflation swaps and iTraxx CDS. Robeco is a long-term advocate of central clearing of standardized OTC derivatives. In Q4 2011 we were one of the first European asset managers to move to central clearing for all our investment funds’ interest rate swaps and we have been keen to expand to other instruments once available for clearing.”

“We are pleased to continue to bring more innovative solutions to market”. Silas Findley, EMEA head of Futures, Clearing and Collateral. “We remain highly focused on meeting the increased demand of our clients in the futures, clearing and collateral management space and our partnership with Robeco to flawlessly execute this transaction highlights our commitment to providing best-in-class derivatives clearing services.”

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About Citi:

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

Additional information may be found at http://www.citigroup.com | Twitter: @Citi | YouTube: http://www.youtube.com/citi | Blog: http://blog.citigroup.com/| Facebook: http://www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151028006044/en/

Citi Media Contacts:
Capucine Boncenne
+44 (20) 7508-9355
[email protected]

Source: Citi

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