CLS Group Holdings AG (CLS Group) announces that Lloyds Bank Corporate Markets, part of Lloyds Banking Group [LLOY], is now live as a Settlement Member of CLS, bringing the total number of Settlement Members to 63.
CLS is the world's leading provider of a foreign exchange (FX) settlement system for the global banking market. The CLS settlement system covers 17 of the world's most commonly exchanged currencies with the cooperation of many of the world's largest central banks and many of the world's leading financial institutions. As of July CLS has settled an average daily volume of close to 800,000 instructions with an average daily value of US$4.7 trillion in 2011.
Lloyds Bank Corporate Markets became a Shareholder in CLS earlier this year after having been a third party customer for a number of years. As a Settlement Member, Lloyds will be able to leverage the additional benefits CLS delivers. These include the streamlining and standardisation of FX operations which reduces costs. The multilateral netting of the obligations between Member banks also delivers a material reduction in the cash funding values required for FX settlement.
Alan Bozian, Chief Executive Officer of CLS Group and President and CEO of CLS Bank said: "I am delighted that an institution of Lloyd's size and stature has become a direct Settlement Member in CLS. This illustrates the vital role that CLS plays in the FX community. Settlement risk has long been identified as the greatest risk to the FX market and by minimizing this risk, CLS plays a crucial role in optimising risk management and operational efficiency. Participation in CLS continues to grow and we hope to be able to increase our coverage by further expanding our offering in the future."
Anders Henrikson, Head of Global FX Trading at Lloyds Bank Corporate Markets commented: "Direct participation in CLS is an important milestone for Lloyds as we are committed to providing efficient systems and optimal risk management to our clients. With the launch this month of Arena, our FX trading platform, our clients have access to great deal execution on one platform with an array of pre and post trade services such as Lloyds' proprietary economic research and exclusive risk solutions and analytical tools."