2022 Perspectives for the Public Sector

Citi Perspectives for the Public Sector 23 We help users of ETFs to navigate the thousands of products available, trade in the most efficient way and maximize the value of their holdings, for example, via lending or overwriting. Our ETF business is fully integrated with our underlying single security business so we can leverage our pricing know- how and inventory to give clients tight execution. Indeed, the same underlying trading technology has helped to augment our strength in bond trading via market leading fixed income portfolio trading. For clients considering issuing an ETF, we can examine various business models (do-it-yourself, partner with a third party or white label), help design an operating model and provide all the core infrastructure needed to power their ETF business from market making to strategic product partnerships and custody. The range of institutional applications for ETFs continues to expand as the liquidity and granularity of exposures increases; the number of public sector institutions using ETFs as part of their business is growing accordingly. Citi’s experience, insights and platform mean that it is well placed to help institutions to leverage the benefits of this versatile and innovative market. Figure 5: Citi’s ETF trading credentials • Multi-Asset Capabilities Equities, Fixed Income, Commodities • Auto-Pricing Capabilities +90% of all ETFs across Europe • Block and Agency Trading Specialist +$2 trillion balance sheet to handle large ETF trades • Execution Diversification Clients looking to diversify DVP risk from electronic market makers • Market leading Fixed Income offering 1 No. 2 Fixed Income ETF market-maker • +4 bps average spread improvement 2 Equity specialist ETF market maker in ESG, Thematic, Smart Beta, Exotic, Single Country • +3 billion ETF Swap Balances 3 Cost efficient primary execution 1 Tradeweb RFQ platform, 2021 executed tickets 2 Citi ETF trading 2021, traded ETFs (removing main index ETFs), average improvement in bps on trades WON from cover price 3 Citi 2021