CLS, a market infrastructure delivering settlement, processing and data solutions, has announced that Alfa-Bank and First Abu Dhabi Bank (FAB) have agreed to initiate onboarding to CLSNet, a standardized, automated bilateral payment netting calculation service for more than 120 currencies.
The CLSNet service standardizes and increases the levels of payment netting in the FX market. By settling the net amounts calculated by CLNet instead of gross amounts, clients can take advantage from improvements to intraday liquidity, better operational efficiency and increased risk mitigation for non-CLS-settled currencies, many of which are in emerging markets.
Leading Russian bank Alfa-Bank and UAE’s largest bank, FAB, will join the current CLSNet user community of global and regional banks, including Actinver, Bank of America, Bank of China (Hong Kong), BNP Paribas, Citibank, Goldman Sachs, Intesa Sanpaolo, J.P. Morgan and Morgan Stanley.
Further to this, Alfa-Bank and FAB are the first in their respective domiciles of Russia and the UAE to join CLSNet. This highlights the growing capabilities of CLSNet to include a broader segment of the global FX market community.
Keith Tippell, Global Head of Product, CLS, commented:
Keith Tippell Source: LinkedIn
The addition of these emerging market leaders demonstrates the appeal of CLSNet to FX market participants trading in emerging market currencies. Given the sharp focus on settlement risk mitigation across the industry, CLS is investing further in evolving CLSNet to ensure broad-based adoption and explore new functionality related to liquidity optimization and payment certainty.
Andrew Chulack, Deputy Chairman of the Executive Board, Corporate and Investment Bank Director, Alfa-Bank, said:
We are honored to represent Russia in this global solution. As a leading Russian player in the global e-commerce and FX market and market maker for ruble instruments, CLSNet will allow Alfa-Bank to further develop its customer base and expand its business in the international market. Our participation in the service will be integral to our ability to improve operational efficiency and reduce risk for the currencies that we trade, particularly the Russian ruble, which is not currently eligible for settlement in CLS.
Anan Samaneh, SVP & Head of FXMM & Control Operations, FAB, added:
Anan Samaneh Source: LinkedIn
This agreement with CLS highlights FAB’s importance as a leader in the global FX market. Being the first mover in the Middle East showcases FAB’s commitment to embrace innovation, particularly as a specialist in emerging markets. We hope our vision to constantly grow stronger will spur other organizations in the region to similarly participate in this netting and confirmation system and improve standards across the board.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.