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Citibank Indonesia to offer account operator service
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The trading floor of the Indonesia Stock Exchange (IDX) in Jakarta. (JP/Wienda Parwitasari)
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itibank Indonesia with Indonesia Stock Market Clearing House (KPEI) and PT Citigroup Sekuritas Indonesia launched on Wednesday its account operator service at the IDX building, making it the first custodian bank to offer such a service in Indonesia.
"The service will improve the efficiency of the capital market in Indonesia and the competitiveness of securities companies," Citibank Indonesia president director Batara Sianturi said in Jakarta on Wednesday.
KPEI opened the market for account operator services based on the Financial Services Authority (OJK) regulation issued in 2010 and revised in 2012.
An account operator service supports brokers who seek to leverage the full-service offerings by custodians, including settlement and asset servicing.
The service will allow securities brokers to shift their operational fixed costs to a variable cost model and they can transfer the bulk of their operational risk to their custodian bank.
KPEI president director Hasan Fawzi hoped that more banks would follow Citibank to improve cost efficiency and operational effectiveness.
Having been a custodian bank in 64 countries, Citibank is also a leading provider of account operator and general clearing member services in the global arena, including several markets in Asia Pacific countries. (bbn)
