(CLS) and NEX (Nex) Optimisation have together announced the expansion of CLS
Aggregation Services to support the aggregation of non-CLS currencies.
aggregation service handles spot transactions and aims to address the
operational and capacity challenges experienced by banks as a result of high
frequency FX trading.
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 firms say.
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 firms add.
Lawrence, chief administrative officer for FX and local markets for Citi, says,
“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.”
Marquard, chief strategy and development officer at CLS, adds, “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, says, “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.”