Media contacts
Green Target
ABN AMRO joins CLSSettlement
ABN AMRO has re-joined CLSSettlement as a settlement member effective May 5. The bank joins 73 other leading banks in becoming a settlement member in CLSSettlement.
ABN AMRO was part of the first group of settlement members that went live in CLSSettlement when the service launched in 2002. It subsequently transitioned to indirect participation as a third-party participant in 2009. The bank’s recent decision to re-join as a settlement member highlights its commitment to reducing FX settlement risk and improving operational efficiency through payment-versus-payment (PvP) solutions.
CLSSettlement is recognized as the global standard for FX settlement risk mitigation, settling over USD7 trillion of payment instructions daily across 18 of the most traded currencies.
As the FX market evolves, the demand for secure and efficient settlement mechanisms continues to grow, particularly among financial institutions seeking to align with the settlement risk best practices outlined in Principle 35 of the FX Global Code.[1]
Additionally, ABN AMRO will offer third-party access to CLSSettlement for its clients, further demonstrating its commitment to implementing robust FX settlement risk management practices and operational excellence within the broader FX ecosystem.
“Mitigating FX settlement risk has always been a priority for ABN AMRO”
Head of Global Markets
ABN AMRO
Lisa Danino-Lewis, Chief Growth Officer, CLS said: “We are delighted to welcome ABN AMRO as a settlement member to CLSSettlement. 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.”
Jacco Keijzer, Head of Global Markets, ABN AMRO commented: “Mitigating FX settlement risk has always been a priority for ABN AMRO. As a long-standing participant in CLSSettlement, we recognize 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.”
[1] Principle 35 states:Where practicable, Market Participants should eliminate Settlement Risk, for example by using settlement services that provide PvP settlement. Where Settlement Risk cannot be eliminated, Market Participants should reduce the size and duration of their Settlement Risk as much as practicable. The netting of FX settlement obligations (in particular the use of automated netting systems) is encouraged.[2] Settlement members fund only around 1% of the total value of their payment instructions on a typical day.