US investment bank Citi will begin offering direct custody & clearing (DCC) services to clients in Denmark by the end of this year.

The launch means the firm will soon have a direct custody platform in 63 markets globally and be the first universal bank to offer the services in both Sweden and Denmark.

DDC units provide on the ground coverage and expertise for clearing, settlement, custody and asset servicing to asset managers, pension funds and insurers.

They also offer local market sub-custody services to banks and global custodians around the world.

“The opening of Denmark DCC further expands Citi’s unique custody footprint as the largest provider of custody services in the region and globally,” said Reto Faber, head of direct custody and clearing in EMEA for Citi.

“It also supports our ambition to provide custody services as a direct participant in all of the major T2S markets, thereby enabling clients to benefit from the consistency and connectivity of our integrated network.”

T2S is the European Central Bank's single, pan-European platform for securities settlement in central bank money.

Citi will work witj with VP SECURITIES - the central securities registration agent in Denmark and an approved CSD - as part of the launch.

Birger Schmidt, chief commercial officer for VP SECURITIES, said he expects even more key players in the global market will launch direct market access to the Danish market.

DCC plays an integral role in the capital markets by providing clearing and settlement services for the trading and investing activities of broker dealers as well as offering local market sub-custody services to banks and global custodians around the world.

Andrew Man, country officer for Citi in Denmark, added: “Citi has a long-standing presence in Denmark; we have been here for over four decades. Denmark is a very important country for us and we recognise the opportunities for growth here.

"Our new direct custody and clearing business compliments the existing wide range of products that we deliver on the ground."