04.23.2020

CLS Gains First Latin American Third-Party Service Provider

04.23.2020
Shanny Basar

CLS, a market infrastructure group delivering settlement, processing and data solutions, announced today that Banco Monex has become the first Latin American third-party service provider of CLS’s leading payment-versus-payment (PvP) FX settlement service, CLSSettlement.

Banco Monex has been a CLSSettlement member since 2018, when it became the first Mexican bank to participate directly in CLSSettlement. The bank’s decision to offer third-party access is a strong indicator of potential growth in CLSSettlement in the Latin America region. By enabling its clients to participate as third parties, Banco Monex is helping them to mitigate settlement risk while significantly enhancing liquidity efficiencies for the Mexican market.

Commenting on this decision, Héctor Lagos, CEO, Banco Monex, said: “As a CLSSettlement member for nearly two years, we have benefited from the increased liquidity, reduced settlement risk and greater operational efficiency the service provides. We look forward to facilitating access to CLSSettlement for our clients as third parties and believe this will help to build a more robust FX market in Latin America and globally.”

Alan Marquard, Chief Business Development Officer, CLS, added: “Banco Monex’s decision to enable access to CLSSettlement for third-party participants, including funds, non-bank financial institutions and corporates, is a prime example of how our PvP FX settlement service is a business enabler. In addition to settlement risk mitigation, CLSSettlement provides participants with business growth opportunities through enhanced credit efficiency, an expanded range of counterparties, and increased trading opportunities.”

Source: CLS

Related articles

  1. Richard Turner of Insight Investment sees more automation and more transparency around cost and outcomes.

  2. Pace of FX TCA Quickens

    Nearly all cleared activity is in non-deliverable forwards (NDFs).

  3. From The Markets

    Three Banks Join CLSNet

    CLSNet standardizes and centralizes post-trade processes across FX.

  4. Emerging Market FX Trading: Liquidity Challenges

    The two platforms will link trading workflows in emerging markets bonds and currency swaps.

  5. FX clearing offers operational efficiencies and credit intermediation.