The New York Clearing Corporation (NYCC), the clearing house subsidiary of the New York Board of Trade (Nybot), has signed up to JPMorgan Treasury Services' third party continuous linked settlement (CLS) services.
The NYCC will connect to the CLS Bank via JPMorgan Access - JPMorgan's Web-based global client access electronic banking platform - for the settlement of its quarterly foreign currency futures contracts.
NYCC settles approximately $7-$10 billion in ten currencies, four times a year. JPMorgan TS says CLS will significantly reduce the settlement and operational risk in these transactions. NYCC will also be able to net capital inflows and outflows, mitigating systemic risk.
JPMorgan now claims 32 third party mandates for its CLS business, including its first non-bank client Refco, signed in October last year.
Brian Wedge, CLS global product manager EMEA, JPMorgan TS, says: "A growing number of non-bank counterparties are using CLS."