Citi Payments Perspectives

23 Treasury and Trade Solutions Citi Payments Perspectives Global Initiatives Payments Infrastructure Developments Regional Developments (North America) Regional Developments (North America) Immediate Cross-Border Payments (IXB) In early 2021, The Clearing House (TCH) and the Euro Banking Association (EBA) Clearing launched their joint “Immediate Cross-Border Payments” taskforce. The goal of this taskforce is to improve payments across the USD/EUR corridor by creating a blueprint for an immediate, frictionless cross-border payment model. This blueprint was shared with the payments community during the summer of 2021. The blueprint defined three “models”: • Improved Intermediated model — leveraging existing intermediary model but creating a more “instant” and certain payments process through synchronized settlement, SLAs, pre-validation and potentially a 24/7 operating model • Cross Participation model — building on capabilities of the previous model but adding the ability for players to choose to be “indirect” participants in a reciprocal scheme leveraging a liquidity provider for settlement — focused on one-leg out RTP payments • Cross-Border Integration model — fully integrating TCH and EBA systems and allowing full cross participation In October, the IXB working group successfully executed a test environment POC of “model 1” across the TCH RTP and EBA RT1 instant payment systems. 23 Citi was one of the participants in this POC, leveraging our connectivity to RTP to support the TCH side of the transaction. The test was a success and included the SWIFT Platform as the connectivity bridge/rules engine between both RTP and RT1, providing pre-validation, synchronized settlement and real-time information exchange. The test was a success and included the SWIFT Platform as the connectivity bridge/rules engine between both RTP and RT1, providing pre- validation, synchronized settlement and real-time information exchange. Global Initiatives Financial Stability Board (FSB) Enhancing Cross-Border Payments Roadmap Emerging Payments and Digital Assets Payments Infrastructure Developments ISO 20022 SWIFT Transformation Instant Payments Financial Market Infrastructure (FMI) Interlinkage Initiatives Regional Developments (North America) Immediate Cross-Border Payments (IXB) TCH Request for Pay (RFP) Bill Pay Latest on Fed/CHIPS ISO Timelines Lynx — Canadian High-Value Payment System Glossary