Barclays Capital has become the ninth bank to join the CLS Group and Traiana joint venture, which provides trade aggregation services to OTC market.
Barclays Capital joins an initial group of eight banks as a CLS Aggregation Participant in CLS Aggregation Service (CLSAS), comprising Bank of America Merrill Lynch, Credit Suisse, Citibank, Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley and the Royal Bank of Scotland.
CLSAS seeks to offer improved post trade operational efficiencies and costs that can boost business growth, the firms claim. 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, CEO of CLS Group and president and CEO of CLS Bank says: “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 adds: “Rising volumes in the FX markets have highlighted the importance of CLS Aggregation.”