CLS is a banking industry initiative designed to reduce risk, increase trading opportunities and reduce costly reconciliation from the settlement of foreign exchange trades.

The arrangement will promote the integration and optimization of Mashreqbank's treasury, trading, cash management and reporting functions with The Bank of New York's settlement operation. Mashreqbank will use SafeSettle, The Bank of New York's proprietary Internet link to CLS, to monitor CLS settlement on a real-time basis.

Majid Husain, senior vice president and Head of the Financial Institutions Division at Mashreqbank, said, "We selected The Bank of New York as our CLS partner because of its ability to provide us with unique solutions that will enable us to offer third party payments capability to our clients. We have had a long and mutually beneficial relationship with the Bank, and we look forward to the continued expansion of our alliance."

William F. Williams, senior vice president and Head of The Bank of New York's Middle East, Eastern Europe and Africa Division, said, "Our third party CLS services will enable Mashreqbank to reduce its settlement risk and process its foreign exchange payments in a more efficient manner, and we look forward to working with Mashreqbank to enhance value for its customers."