CLS Adds Metrobank as Third-Party Participant to CLSSettlement

Metrobank is the first Philippine bank to be added to the settlement service.

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 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.

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“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 cost, CLS brings considerable reduction of liquidity consumption through its netting effect.”

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