US provider of settlement services for fx market CLS, announced that Banco Monex will become the first Latin American third-party service provider of CLSSettlement, CLS’s leading payment-versus-payment (PvP) FX settlement service.

In 2018 Banco Monex became the first Mexican bank to participate directly in CLSSettlement and it has been a member since. The decision to offer access to third-party participants is an indicator that there is a potential for growth of the CLSSettlement in the Latin American region. Banco Monex helps the mitigation of settlement risk by offering third-party access and at the same time improves liquidity efficiencies for the Mexican market.

Héctor Lagos, CEO, Banco Monex, commented:

As a CLSSettlement member for nearly two years, we have benefited from the increased liquidity, reduced settlement risk and greater operational efficiency the service provides. We look forward to facilitating access to CLSSettlement for our clients as third parties and believe this will help to build a more robust FX market in Latin America and globally.

Alan Marquard, Chief Business Development Officer, CLS, said:

Banco Monex’s decision to enable access to CLSSettlement for third-party participants, including funds, non-bank financial institutions and corporates, is a prime example of how our PvP FX settlement service is a business enabler. In addition to settlement risk mitigation, CLSSettlement provides participants with business growth opportunities through enhanced credit efficiency, an expanded range of counterparties, and increased trading opportunities.

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