Treasury transaction values and volumes among alternative and institutional fund clients of the Citco group of companies (Citco) climbed 14% to a record $1.55tn in 2023, driven by increased demand for outsourced treasury management.
Citco’s 2023 Middle Office Solutions Report reveals there was also a 17% increase in treasury payment volumes, which jumped in Q4 in particular, with Citco processing 511,000 payments overall in 2023.
The growth of Citco’s Middle Office Solutions’ treasury management services shows treasury remained a very important area for clients’ middle office teams last year, amid a backdrop of rising interest rates, which rose to a multi-decade high in the US.
Elsewhere, the number of affirmed trades for trade matching purposes processed by Citco’s Middle Office Solutions team more than doubled in 2023; Citco also reported increased demand from clients for outsourcing of this specific function.
In total there was a 140% increase in the number of affirmed trades year-on-year (YoY), with nearly two million trade matching trades. Activity was up in every area, with listed trades 124% higher YoY, and Equity Swaps up 112%.
An uptick in volatility in Q4 saw collateral figures rise versus previous quarters – given volatility and calls are correlated – to keep collateral margin volumes for 2023 in-line with the previous year’s tally. Collateral margin volumes came in at 61,227 transactions for the full year, 3% lower than 2022’s figure.
