FOREIGN EXCHANGE

NEX to extend currency aggregation to renminbi and ruble

Extension of deal between NEX and CLS will enable wider range of currencies to benefit from operational and risk management.

By John Bakie john.bakie@strategic-i.com July 10, 2017 10:18 AM GMT

NEX Group has announced plans to extend an aggregation service to a range of popular currencies including Chinese renminbi, Russian ruble, Turkish lira and the Polish zloty.

The deal will see CLS Group, which already works with NEX Optimisation to provide FX trade aggregation across a range of currencies, extend its offering to a wider universe of currency products.

CLS provides aggregation for FX spot transactions to address operational and capacity challenges experienced by FX market participants. The service aggregates matched FX trades to a single trade which is then processed through to settlement, reducing operational risk and enhancing the capabilities of bank middle and back office systems.

Each of the new currencies can be aggregates against either the US dollar or euro, extending risk mitigation and operational benefits to a broader section of the market.

Mike Lawrence, chief administrative office for foreign exchange and local markets at Citibank, said: “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.”