CLS Adds Metrobank as Third-Party Participant to CLSSettlement

CLS has added the first Philippine bank as a third-party participant to access CLSSettlement - Metrobank - the market infrastructure provider announced this Monday. Providing access to Metrobank is UBS, a CLSSettlement member.

Metrobank is one of the largest banks in the Philippines. According to the statement published by the company today, the latest member is a testament to the solid growth of third-party participation in CLSSettlement across the region.

Commenting on the announcement, Margaret Law, Head of Client Management, Asia Pacific, CLS, said in the statement: "We are thrilled that Metrobank has chosen to use CLS's Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term service."

"With the growth of FX trading in many Asian currencies, the issue of settlement risk has become an increasing concern and it is essential that all market participants, buy side or sell side, implement appropriate FX risk mitigation services such as CLSSettlement."

FX trading grows in Asia

In the Asia Pacific (APAC) region, the number of third parties participating in the settlement services has increased by 15 percent since 2018, the company said. The respective average daily gross values settled has also risen by 17 percent.

"Our participation in CLSSettlement will enable Metrobank to mitigate settlement risk and reduce operational costs related to FX trading," added Bob Murga, Metrobank Operations Group Head. "Ultimately, CLS creates opportunities for us to expand our business by having access to a wider pool of counterparties."

CLS has been expanding the reach of its products. As Finance Magnates reported, last week, the company revealed that Actinver, BNP Paribas, Citibank, and J.P. Morgan had all gone live on CLSNet, a payment netting calculation service.

Speaking on the announcement, Christian Stolcke, Global Head of Banks at UBS, explained in the statement: "We are delighted to provide Metrobank access to CLSSettlement."

"Wider participation in the service will help to build a more robust global FX market through the mitigation of FX settlement risk. Furthermore, in times of increasing intraday funding and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term cost, CLS brings considerable reduction of liquidity consumption through its netting effect."