Citi Supports First Covered Call ETFs in Hong Kong for Global X ETFs

HONG KONG - Citi Securities Services has been appointed by Global X ETFs, part of Mirae Asset Financial Group, to service Hong Kong’s first-ever covered call ETFs.  These ETFs bring the advantages of a traditional covered call strategy to the world of ETFs in Hong Kong for the first time, marking a major milestone in the evolution and development of the local market.

Mirae Asset Financial Group manages assets worldwide in excess of USD$535 billion and has over 575 ETFs globally totaling USD$109 billion in assets. Global X ETFs today launched the ‘Global X HSI Components Covered Call Active ETF’ (3419) and ‘Global X HSCEI Components Covered Call Active ETF’ (3416).

Citi will provide complete trustee, custody, fund accounting and ETF servicing for these ETFs.  The presence of options in the ETF basket presents additional servicing requirements that Citi is already geared up to provide through ACES^[1] – the bank’s global proprietary technology that automates the entire ETF process.

“Mirae’s decision to select Citi for its flagship covered call ETFs is solid recognition of our ETF servicing capabilities and we are proud to be a part of this market-first in Hong Kong,” commented David Brown, Asia North, Australia and Japan Cluster Head, Citi Securities Services. “Our Securities Services offering is versatile and designed to meet the changing needs of the market and our clients, as we continue to invest in ACES and our ETF servicing capability.”

“Our launch of Hong Kong’s first ever covered call ETFs demonstrates our continued commitment to Hong Kong as a leading financial center in Asia while providing investors with more choices,” said Young Rae Cho, Chief Operating Officer, Mirae Asset Global Investments (Hong Kong) Limited. “We chose Citi to be our partner given the bank’s industry leading capabilities within the ETF ecosystem as well as our longstanding relationship.”

Citi Securities Services continues to expand its ETF service proposition globally with the addition of new capabilities. Most recently, Citi launched Financial Information eXchange (FIX) connectivity in the US, enabling automation across the ETF order process. Citi now also supports dual-access funds in Australia that give investors flexibility to access funds through either listed or via traditional unlisted distribution channels.

Since 2014, Citi’s ETF Services business has grown exponentially in scale, covering 12 markets globally, and close to USD$555 billion in assets under administration. The bank supports close to 50 global ETF issuers and close to 600 funds^[2]. In Asia Pacific, Citi provides Custody, Trustee, Fund Administration & Accounting and ETF services to over 430 exchange-traded products (ETPs) from 43 issuers^[3] across the region.

Citi Securities Services has approximately USD$29.2 trillion^[4] of assets under custody, administration, and trust worldwide, and a leading proprietary network spanning more than 60 markets. It provides cross-border support for clients with extensive on-the ground local market expertise, innovative post-trade technologies, customized data solutions, and a wide range of custody and fund services that can be tailored to meet clients’ needs.

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

Media Contacts

Harsha Jethnani harsha.jethnani@citi.com +65 93830872