Frances Maguire
Frances Maguire

Pre-settlement processing - A new initiative from CLS and ICAP

CLS Group and interdealer broker, ICAP, are creating a new joint venture (JV) to provide trade aggregation services to participants active in the over the counter FX market. The new business, initially named CLS Aggregation, is designed to address the rapid increase in foreign exchange trading as an asset class by a widening group of hedge funds, algorithmic traders, retail and institutional market participants, which have brought substantially higher volumes to the foreign exchange industry.

First Published: e-Forex Magazine 36 / Marketplace / July, 2009

Mark Yallop, chief operating officer at ICAP, says the aim of the joint venture with CLS is to cut ticket costs and reduce the levels of operating risk in processing. He adds: “The dramatic growth of the FX market means it is now facing challenges that were completely unforeseen even and few years ago.” The initial group of banks that have committed support to the joint venture is: Citigroup, Deutsche Bank, J.P. Morgan and Royal Bank of Scotland.  Other significant FX prime broking banks have been invited to become part of the founding group. Participating banks not part of the founding group will be able to participate in the service, subject to the same pricing schedule as the founding banks.Mark Yallop “The dramatic growth of the FX market means it is now facing challenges that were completely unforeseen even and few years ago.” Ownership structure The joint venture will be a CLS subsidiary, 51 per cent owned by CLS Group and 49 per cent owned by ICAP, operating within the...continued

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