ABN AMRO has confirmed it has re-joined CLSSettlement as a settlement member, effective as of 5 May.
Jacco Keijzer
The bank was part of the initial first group of settlement members that went live when the service launched in 2002, moving to an indirect, third party participation in 2009.
Jacco Keijzer, head of global markets, ABN AMRO, explained: “Mitigating FX settlement risk has always been a priority for ABN AMRO. As a long-standing participant in CLSSettlement, we recognise the value it brings to our operations while supporting our adherence to global best practices.
“Becoming a settlement member reflects our dedication to creating a more robust and efficient FX ecosystem, while ensuring our FX operations uphold the highest standards of operational efficiency and risk mitigation.”
CLSSettlement settles more than seven trillion payment instructions daily across 18 currencies.
As part of the move, ABN AMRO will offer third-party access to CLSSettlement for its clients, the bank confirmed.
Lisa Danino-Lewis, chief growth officer, CLS, said: “The bank’s decision reflects the wider benefits of CLS’s PvP settlement system, such as our approach to multilateral netting and the in/out swap tool which delivers capital and liquidity efficiencies.
“Settlement members who use both solutions only fund around 1%2 of the total value of their payment instructions on a typical day, enabling cash flow to be available for other business operations like trading, sales and business growth.”