New York and London, 16 May, 2013 – CLS Group (CLS), the market infrastructure that enhances financial stability by providing risk mitigation services to the global FX market, and Traiana, the leading provider of post-trade and risk solutions, announced today that Mizuho Corporate Bank, Ltd. (Mizuho) has joined CLS Aggregation Services LLC (CLSAS). CLSAS provides trade compression services to participants active in the over-the-counter FX market, helping reduce post-trade operational risk.
Mizuho joins a group of nine banks which includes BofA Merrill Lynch, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley, and Royal Bank of Scotland.
CLSAS offers a range of benefits for participants including reduced market and operational risk, streamlined processing and standardized post-trade and pre-settlement delivery. Since its launch, CLSAS has seen steady growth, with average daily volumes rising 45% to 440,000 in the first quarter of 2013 from 304,000 in the first quarter of 2012.
David Puth, CEO of CLS, said: “This is another significant milestone for CLS Aggregation Services as we welcome Mizuho as a participant. We have seen strong growth in volumes for the service over the past year, highlighting the role it plays in both reducing risk and further strengthening the FX market’s global infrastructure.”
Andrew Coyne, CEO, Traiana said: “We are delighted to welcome Mizuho to CLSAS. In the two years since its launch, CLSAS has been instrumental in reducing operational risk and helping to unlock capacity for its users, supporting their own business growth. With Mizuho on board as the first Asian bank, the service is expanding its global reach”
Mr. Nakano, Executive Officer and General Manager of the Forex Division, Mizuho added: “I am pleased that Mizuho has joined CLS Aggregation Services as the first participant from Asia. The trade compression service will help mitigate operational risk, providing us with resource and processing efficiencies.”
CLSAS went live in January 2010 and works by compressing matched FX transactions to a single aggregate trade which is then processed for settlement by CLS.
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Nick Murray-Leslie, Chatsworth Communications
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Candice Adam, Argentus PR
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Mizuho Corporate Bank, Ltd.
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CLS enhances financial stability through the mitigation of FX settlement risk globally, playing a fundamental role in the FX market. It operates the largest multi-currency cash settlement system to mitigate settlement risk for the FX transactions of its Members and their customers.
Launched in 2002, CLS settles payment instructions relating to underlying FX transactions in the following 17 currencies: US Dollar, Euro, UK Pound, Japanese Yen, Swiss Franc, Canadian Dollar, Australian Dollar, Swedish Krona, Danish Krone, Norwegian Krone, Singapore Dollar, Hong Kong Dollar, New Zealand Dollar, Korean Won, South African Rand, Israeli Shekel and Mexican Peso.
CLS mitigates FX settlement risk by using a unique combination of payment-versus-payment settlement in central bank funds, multilateral payment netting and a standard legal framework, supported by a robust and resilient infrastructure.
In addition, CLS Aggregation Services LLC, a joint venture between CLS Bank International (51% owner) and Traiana, Inc. (49% owner), an ICAP company, provides an aggregation service for spot FX transactions.
Owned by 74 of the world’s leading financial institutions, CLS Group Holdings AG is the parent company of the CLS Group of companies, including CLS Bank International.
For further information, please visit the CLS website.
® CLS and the CLS logo are registered trademarks of CLS UK Intermediate Holdings Ltd.
Traiana provides global banks, broker/dealers, buy-side firms and trading platforms with services to automate post trade processing of financial transactions in listed and over-the-counter trading markets. Traiana’s post trade solutions and the Harmony Network have become the market standard for post trade processing of foreign exchange, exchange traded derivatives, synthetic and cash equity transactions. Traiana, an ICAP company (IAP.L), is headquartered in New York City with offices in Chicago, Hong Kong, London, Tel Aviv and Tokyo. For more information, please visit www.traiana.com.
About Mizuho Corporate Bank, Ltd.
Mizuho Corporate Bank, Ltd. provides financial and strategic solutions for the increasingly diverse and sophisticated needs of clients, focusing its efforts on serving major corporations, financial institutions, and public sector entities. A relationship management approach to serving clients enables Mizuho Corporate Bank, Ltd., together with group companies such as Mizuho Securities Co. Ltd., to develop customized solutions in areas such as corporate, structured and project finance, investment banking, transaction banking and risk management. With offices in more than 30 countries, Mizuho Corporate Bank, Ltd. offers clients both localized services and the extensive reach of a global business network. Mizuho Corporate Bank, Ltd. is a subsidiary of the Japan-based Mizuho Financial Group, Inc. (NYSE: MFG), one of the largest financial services companies in the world, with total assets of over $2.1 trillion as of Sep 30, 2012. For more information, please visit www.mizuhocbk.co.jp/english.