Barclays joins CLS Aggregation
20 April 2011
~Volumes grow and industry adoption increases ~
20 April 2011
London and New York – CLS Group and Traiana, an ICAP company (IAP.L), announced today that Barclays Capital (through Barclays Bank PLC, NYSE: BCS) has become the latest bank to support the joint venture, which provides trade aggregation services to participants active in the over-the-counter FX market.
Barclays Capital joins an initial group of eight banks as a CLS Aggregation Participant in CLS Aggregation Service LLC (CLSAS), comprising BoA Merrill Lynch (NYSE: BAC), Credit Suisse (NYSE:CS), Citibank (NYSE:C), Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB), Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE:JPM), Morgan Stanley (NYSE:MS) and Royal Bank of Scotland (RBS.L).
CLSAS offers a wide range of benefits for participants, including improving post trade operational efficiencies and costs and boosting business growth. It was established to address the operational challenges of high volume, high frequency trading resulting from the continued growth in FX volumes and the rapid expansion of the FX community. The service matches and compresses trades between CLS Aggregation Parties before downstream processing and settlement in CLS Bank.
The service went live in January 2010 and the Founding Aggregation Participants have adopted the service over the course of the year. It has seen a steady growth in FX volumes as the current Aggregation Parties continue to bring more flow onto the service. This was evidenced on 15 March 2011 when the service processed the highest daily volume recorded so far with 295,984 gross trades aggregated down to 11,788 (a compression rate of 96 per cent and a value of US$286 billion).
Alan Bozian, Chief Executive Officer of CLS Group and President and CEO of CLS Bank said: “CLS Aggregation has taken a step forward today in welcoming another significant FX participant to its community. The steady growth in volumes and further market participation illustrates the fundamental role the service continues to play in securing a safer post trade processing landscape.”
Gil Mandelzis, Traiana's Chief Executive Officer said: “Rising volumes in the FX markets have highlighted the importance of CLS Aggregation. With the support of nine of the world’s largest banks, the value for existing and future CLSAS participants continues to increase. We look forward to working with this growing group of participants to further improve post-trade processing in foreign exchange”.
For further information please contact:
Liz King, Communications Manager +44 (0)20 7971 2147
Caroline Parker +44 (0) 20 7269 7295
Candice Adam, Argentus PR
Tel: + 44 (0)20 7153 4910
Head of Media Relations, ICAP
Tel: +44 (0)20 7050 7104
Aurelie Leonard +44 (0) 20 7773 2800
Notes to editors:
CLS Bank operates the largest multi-currency cash settlement system to eliminate settlement risk in the foreign exchange market. Owned by the foreign exchange community, CLS delivers greater operational efficiency when settling payment instructions related to trades executed in six traded financial instruments and in 17 currencies (US Dollar, euro, UK Pound, Japanese Yen, Swiss Franc, Canadian Dollar, Australian Dollar, Swedish Krona, Danish Krone, Norwegian Krone, Singapore Dollar, Hong Kong Dollar, New Zealand Dollar, Korean Won, South African Rand, Israeli Shekel and Mexican Peso).
Settlement through CLS Bank is the only means by which settlement risk can be eliminated with finality using a unique combination of payment versus payment in central bank funds, multilateral payment netting and a standard legal framework, supported by a robust and resilient infrastructure.
Based on information in the settlement service and recent central bank and market surveys, CLS estimates that in terms of the market for which it provides settlement risk elimination services, its market share is 68% as at April 2010. This emphasises how successful the service has become since its launch 2002. The basis on which CLS has estimated its share of the FX market can be found here.
In 2010 CLS is settling an average daily volume of close to 800,000 instructions with an average daily value of US$4.57 trillion. In November it settled a new record volume of 1,936,790 sides in one day. The 17 currencies settled in CLS account for 94% of the daily value traded.
CLS Bank is based in New York and is an Edge Corporation bank supervised by the Federal Reserve.
For further information, please visit the CLS website at www.cls-group.com
® CLS and the CLS logo are registered trademarks of CLS UK Intermediate Holdings Ltd.
About Traiana, Inc.
Traiana Inc. (www.traiana.com) provides global banks, broker/dealers, buy-side firms and e-trading platforms with solutions to automate post trade processing of financial transactions. Traiana's post-trade solutions and the Harmony Network are used by over 500 of the world's leading financial market participants and have become an industry standard for post-trade processing of foreign exchange, exchange traded derivatives, cash equities and equity derivatives trades. Traiana, an ICAP company, is headquartered in New York City with offices in London, Chicago, Tel Aviv and Tokyo.
ICAP is the world’s premier interdealer broker and provider of post trade services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, foreign exchange, emerging markets and equity derivatives through voice and electronic networks. ICAP is also the source of global market information and research for professionals in the international financial markets. ICAP plc was added to the FTSE 100 Index on 30 June 2006. For more information go to www.icap.com.
About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with a full spectrum of solutions to their strategic advisory, financing and risk management needs. Barclays Capital has offices around the world, employs 25,000 people and has the global reach, advisory services and distribution power to meet the needs of issuers and investors worldwide. For further information about Barclays Capital, please visit our website www.barclayscapital.com.