CLS and NEX Optimisation announce expansion of CLS Aggregation Service to non-CLS currencies
10 July 2017
Trade aggregation will extend to offshore Chinese renminbi (CNH), Russian ruble (RUB), Turkish lira (TRY) and Polish zloty (PLN)
CLS Group (CLS), a leading provider of risk mitigation and operational services for the global foreign exchange (FX) market, and NEX Optimisation, a NEX Group business which helps clients reduce complexity and optimise resources across the transaction lifecycle, announce today the expansion of the CLS Aggregation Services LLC (CLSAS) to support the aggregation of non-CLS currencies.
CLSAS is a trade aggregation service for FX spot transactions and addresses the operational and capacity challenges experienced by banks as a result of high frequency FX trading. A joint venture between CLS and NEX Optimisation’s Traiana business, the service works by aggregating matched FX trades to a single trade which in the case of the CLS currencies is then processed through to settlement in CLS. This results in reduced operational risk and enhanced capacity for the banks’ middle and back office systems, which is especially beneficial for participants on peak volume days.
The expansion of the service to include the aggregation of matched FX trades for offshore Chinese renminbi (CNH), Russian ruble (RUB), Turkish lira (TRY) and Polish zloty (PLN), each against the US dollar (USD) and euro (EUR), will provide significant operational efficiencies and risk mitigation benefits to a broader section of the market. The aggregated trades that include these four non-CLS currencies are not eligible for settlement in the CLS settlement service.
Mike Lawrence, Chief Administrative Officer for Foreign Exchange and Local Markets for Citibank, said: “Adding non-CLS currencies to the CLS Aggregation Service is another significant enhancement for participants and extends crucial operational and risk efficiencies from the service to other highly traded currency pairs.”
Alan Marquard, Chief Strategy and Development Officer at CLS, said: “The expansion is an important development which will help our customers address additional operational and capacity challenges while further strengthening the value of this joint venture to the FX market.”
Joanna Davies, Managing Director at Traiana, said: “We are pleased to continue to support this valuable joint venture and expand the CLS Aggregation Service. The aggregation of additional currency pairs will further reduce payments, improve operational efficiencies and provide participants with additional tangible savings on settlement and infrastructure costs at a time when resources are scarce.”
Nick Murray-Leslie, Chatsworth Communications
+44 (0) 20 7440 9780
Casey Sheets, NEX (US)
+1 917 915 3254
Michelle Gathercole, Argentus PR
+44 (0) 20 7397 2949
CLS’s vision is to be the leading provider of risk mitigation and operational services for the global FX market. It operates the world’s largest multicurrency cash settlement service to mitigate FX settlement risk for its settlement members and their clients globally.
With more than 60 settlement members, comprising the world’s largest financial institutions, and over 23,000 third-party clients, including banks, funds, non-bank financial institutions and multinational corporations, CLS settles payments relating to FX trades across 18 currencies1.
CLS mitigates settlement risk by simultaneously settling the payments on both sides of an FX trade on a real time basis. It does this using its unique payment-versus-payment settlement service which is linked to the real time gross settlement systems of the currencies eligible for CLS settlement. The settlement of these payments across the books of CLS is final and irrevocable. For more information, go to cls-group.com.
® CLS and the CLS logo are registered trademarks of CLS UK Intermediate Holdings Ltd.
Leading the transformation of market structure, NEX Optimisation offers a portfolio of cloud-hosted services across the transaction lifecycle. Ranging from pre-execution credit checking to multilateral portfolio compression, our purpose is to simplify our clients’ workflow and help them optimise their resources. We are an integrated team of financial markets and pioneering financial technology specialists who operate in all asset classes, geographies and business sectors across the financial markets.
We are dedicated to mitigating risk, increasing efficiency, reducing costs and streamlining increasingly complex processes for our clients. We offer the opportunity to optimise both regulatory and financial resources. Find out more here.
A NEX Group business, Traiana operates within NEX Optimisation which helps clients simplify complexity and optimise resources. We provide the world’s markets with regulatory reporting services that monitor pre-trade risk and automate post-trade processing of financial transactions for listed and over-the-counter trading. Our networks link market participants in high speed-to-market, real-time communication across the trade lifecycle, globally. Services, such as the Harmony Network, have become the market standard for post-trade processing in an increasing number of markets.
For more information, go to www.traiana.com
1 Australian dollar, Canadian dollar, Danish krone, euro, Hong Kong dollar, Hungarian forint, Israeli shekel, Japanese yen, Korean won, Mexican peso, New Zealand dollar, Norwegian krone, Singapore dollar, South African rand, Swedish krona, Swiss franc, UK pound and US dollar.