A resolution on the possible delay is anticipated by the first quarter of 2024.
Without adjustments, CLS anticipates $65 billion daily from asset managers missing the deadline.
Global
financial markets may witness a pivotal shift as CLS, a multi-currency
settlement system for FX trades, is considering a delay in settlement
instructions for currency trades.
Adapting
to SEC Rules: CLS Addresses Challenges in Currency Trades
This
move, under examination in the second phase of a study initiated this summer,
aims to address challenges posed by a forthcoming U.S. stock market rule
change, as announced by the U.S. Securities and Exchange Commission (SEC). The
decision on the potential delay is expected to be reached in the first quarter
of 2024.
Lisa Danino-Lewis, Chief Growth Officer, CLS, Source: LinkedIn
Currently,
currency trades funding securities transactions settle in a two-day timeframe.
However, with the impending SEC
rule change scheduled for May 2024, which mandates settling U.S. equity
transactions one day after the trade (T+1), there is a risk of failed
transactions for foreign asset managers.
The
study by CLS seeks to determine if its CLS Settlement service can adapt to
later submissions for next-day FX settlement without causing market
destabilization.
Lisa
Danino-Lewis, Chief Growth Officer at CLS, emphasized the need to ensure that
all members can implement any changes without causing disruptions. CLS's
multilateral netting process, which minimizes risk and enhances cost
efficiency, requires participants to submit FX payment instructions by a
predetermined time.
The
potential delay in the settlement process is being explored to accommodate the
new U.S. market rule and maintain seamless operations. "We're as strong as
our weakest link. If one of our banks fails to pay in, it impacts
everyone," noted Danino-Lewis.
Timing
Matters: CLS and the Implications of Adjusting Settlement Deadlines
The
SEC's T+1 rule change, passed in February, prompted foreign asset managers to
seek CLS's assistance in navigating the transition. CLS estimates that
approximately $65 billion per day worth of currency transactions from asset
managers could miss the deadline if no adjustments are made.
Currently settling
an average of $6.5 trillion in the currency market daily, CLS plays a role in
reducing the total funding required to settle each transaction through its
multilateral netting process. Responses
from the majority of CLS's 74 member banks indicate ongoing discussions about
potentially changing the current midnight CET deadline by 30, 60, or 90
minutes. The impact of such adjustments on bank liquidity, funding,
and the timing of dealings with foreign asset managers remains a focal point of
evaluation.
If the study concludes that a change is feasible, implementation is
likely to occur after the deadline on May 28, 2024, offering foreign asset
managers some relief in adapting to the regulatory landscape.
Global
financial markets may witness a pivotal shift as CLS, a multi-currency
settlement system for FX trades, is considering a delay in settlement
instructions for currency trades.
Adapting
to SEC Rules: CLS Addresses Challenges in Currency Trades
This
move, under examination in the second phase of a study initiated this summer,
aims to address challenges posed by a forthcoming U.S. stock market rule
change, as announced by the U.S. Securities and Exchange Commission (SEC). The
decision on the potential delay is expected to be reached in the first quarter
of 2024.
Lisa Danino-Lewis, Chief Growth Officer, CLS, Source: LinkedIn
Currently,
currency trades funding securities transactions settle in a two-day timeframe.
However, with the impending SEC
rule change scheduled for May 2024, which mandates settling U.S. equity
transactions one day after the trade (T+1), there is a risk of failed
transactions for foreign asset managers.
The
study by CLS seeks to determine if its CLS Settlement service can adapt to
later submissions for next-day FX settlement without causing market
destabilization.
Lisa
Danino-Lewis, Chief Growth Officer at CLS, emphasized the need to ensure that
all members can implement any changes without causing disruptions. CLS's
multilateral netting process, which minimizes risk and enhances cost
efficiency, requires participants to submit FX payment instructions by a
predetermined time.
The
potential delay in the settlement process is being explored to accommodate the
new U.S. market rule and maintain seamless operations. "We're as strong as
our weakest link. If one of our banks fails to pay in, it impacts
everyone," noted Danino-Lewis.
Timing
Matters: CLS and the Implications of Adjusting Settlement Deadlines
The
SEC's T+1 rule change, passed in February, prompted foreign asset managers to
seek CLS's assistance in navigating the transition. CLS estimates that
approximately $65 billion per day worth of currency transactions from asset
managers could miss the deadline if no adjustments are made.
Currently settling
an average of $6.5 trillion in the currency market daily, CLS plays a role in
reducing the total funding required to settle each transaction through its
multilateral netting process. Responses
from the majority of CLS's 74 member banks indicate ongoing discussions about
potentially changing the current midnight CET deadline by 30, 60, or 90
minutes. The impact of such adjustments on bank liquidity, funding,
and the timing of dealings with foreign asset managers remains a focal point of
evaluation.
If the study concludes that a change is feasible, implementation is
likely to occur after the deadline on May 28, 2024, offering foreign asset
managers some relief in adapting to the regulatory landscape.
FXSpotStream Reports Record $96.8 Billion Daily Volume in August
Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
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👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
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👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Reimagining a New Era of Banking for Businesses | FMPS:24
Reimagining a New Era of Banking for Businesses | FMPS:24
In the face of an economic downturn and a rapidly changing banking landscape, modern businesses require a fresh approach to banking. Join Shannon Scott, SVP and Global Head of Product at Airwallex, as she discusses the limitations of legacy financial systems and offers insights into how banking can evolve to better meet the needs of today’s businesses. This session will provide valuable perspectives on how to shape the future of business banking to navigate and thrive in a challenging economic environment.
#fmps #fmps24 #fmevents #BusinessBanking #EconomicDownturn #FinancialInnovation #ModernBanking #Airwallex
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🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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In the face of an economic downturn and a rapidly changing banking landscape, modern businesses require a fresh approach to banking. Join Shannon Scott, SVP and Global Head of Product at Airwallex, as she discusses the limitations of legacy financial systems and offers insights into how banking can evolve to better meet the needs of today’s businesses. This session will provide valuable perspectives on how to shape the future of business banking to navigate and thrive in a challenging economic environment.
#fmps #fmps24 #fmevents #BusinessBanking #EconomicDownturn #FinancialInnovation #ModernBanking #Airwallex
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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In financial services, achieving global success requires a deep understanding of local markets. In this hands-on, country-specific session, top experts from the Asian Pacific region will explore what drives traders in this diverse market. The discussion will cover strategies for retaining local partners for effective collaboration, the top-performing assets in various regions and the reasons behind their success, and insights into how the industry is evolving, including where the opportunities will be in 2025.
Speakers:
Fraser Nelson, Global Head of Business Development, Scope Markets
Firdaus Ali, Business Analyst & Partnership Manager, TradingPRO
Joy Li, Head of APAC, Gold-i
Sam Grecner, Director of Growth (Australia), TradingView
Mario Singh, Founder and Chairman, Fullerton Markets
Stephen Williams, Premium Client Manager, Capital.Com
#fmps #fmps24 #fmevents #APACFinance #GlobalTrading #MarketInsights #LocalMarkets #financialservices
Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
In financial services, achieving global success requires a deep understanding of local markets. In this hands-on, country-specific session, top experts from the Asian Pacific region will explore what drives traders in this diverse market. The discussion will cover strategies for retaining local partners for effective collaboration, the top-performing assets in various regions and the reasons behind their success, and insights into how the industry is evolving, including where the opportunities will be in 2025.
Speakers:
Fraser Nelson, Global Head of Business Development, Scope Markets
Firdaus Ali, Business Analyst & Partnership Manager, TradingPRO
Joy Li, Head of APAC, Gold-i
Sam Grecner, Director of Growth (Australia), TradingView
Mario Singh, Founder and Chairman, Fullerton Markets
Stephen Williams, Premium Client Manager, Capital.Com
#fmps #fmps24 #fmevents #APACFinance #GlobalTrading #MarketInsights #LocalMarkets #financialservices
Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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🐦 Twitter: https://twitter.com/F_M_events
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Unlocking Smart Money Secrets: How to Trade Changing Markets | FMPS:24
Unlocking Smart Money Secrets: How to Trade Changing Markets | FMPS:24
Join Thomas Atkinson, Chief Market Analyst at FX Evolution, for an insightful seminar on the advanced strategies institutional investors use to excel in volatile markets. This session will delve into how smart money creates liquidity, the critical role of news and earnings in signaling market reversals, and practical tools for identifying key market shifts. Attendees will gain valuable knowledge on using volume profile tools to pinpoint market turning points, optimizing trades with specific liquidity setups, and enhancing overall trading strategies to navigate dynamic market conditions with confidence.
#fmps #fmps24 #fmevents #TradingIndustry #TradingStrategies #MarketAnalysis #Liquidity #VolumeProfile #InstitutionalInvesting #FinancialExpo #australia
📣 Stay updated with the latest in finance and trading!
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🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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Join Thomas Atkinson, Chief Market Analyst at FX Evolution, for an insightful seminar on the advanced strategies institutional investors use to excel in volatile markets. This session will delve into how smart money creates liquidity, the critical role of news and earnings in signaling market reversals, and practical tools for identifying key market shifts. Attendees will gain valuable knowledge on using volume profile tools to pinpoint market turning points, optimizing trades with specific liquidity setups, and enhancing overall trading strategies to navigate dynamic market conditions with confidence.
#fmps #fmps24 #fmevents #TradingIndustry #TradingStrategies #MarketAnalysis #Liquidity #VolumeProfile #InstitutionalInvesting #FinancialExpo #australia
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
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