CLS Bank witnesses drop in FX Settlement - July 2011

CLS Bank, a multi currency cash 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 system saw the average number of daily foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term payment instructions fall by 2 percent in July from the previous month, while the average value also dropped.

Daily values settled last month fell to $4.87 trillion after crossing the $5 trillion mark in June for the first time to hit $5.12 trillion, though this still marked a year-on-year increase of 24 percent, CLS said.

The average daily volume of payment instructions fell to 801,815 from 818,152 instructions in June, although this marked a slight increase from the 754,780 sides settled in July 2010, CLS said.

The CLS Aggregation Service aggregated a daily average of 209,129 instructions, up from 198,977 in June. On July 12, the service recorded a new daily record volume of 398,170.

CLS is owned by the foreign exchange community at large, CLS delivers operational efficiency when settling payment instructions related to trades executed in six traded instruments and in 17 major currencies.

CLS Settlement is the only means by which settlement risk can be eliminated with finality using a unique combination of payment versus payment in central bank funds, multilateral payment netting and a standard legal framework.

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