CLS Introduces Two New Membership Categories to Support Expansion Efforts
- The new categories support the strategy of further reducing risk and delivering liquidity benefits to the global FX market.
CLS Group, a provider of risk mitigation and operational services for the global Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market, announced today that it has introduced two new membership categories to support participation expansion efforts - affiliated settlement membership and non-shareholder settlement membership.
The two new models add to the existing shareholder and central bank settlement membership categories and follow the recent launch of a new scalable market infrastructure interface, aimed at meeting the demands of the future, as reported by Finance Magnates last November.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
Affiliated Settlement
The affiliated settlement membership category allows institutions to have more than one entity within a corporate group become a settlement member. The category is aimed at institutions seeking to segregate their FX businesses to manage their own CLS participation and correspondent banking relationships.
It also removes the reliance on internal clearing and intergroup limits, helps settlement members meet their regulatory ring-fencing Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term and facilitates recovery and resolution planning.
Non-Shareholder Settlement
Non-shareholder settlement members agree to a different commercial construct in lieu of shareholding in CLS Group Holdings. Instead of an investment in shares, non-shareholder settlement members pay a monthly minimum fee for a defined number of months.
Beyond the defined time period, non-shareholder settlement members pay for their submissions. All other membership eligibility criteria remain the same as shareholder settlement members and non-shareholder settlement members have the same rights and responsibilities as shareholder settlement members.
All settlement members, irrespective of their settlement membership category, will benefit from the same risk mitigation, multilateral netting, operational efficiency and business growth opportunities that CLS provides.
David Puth, CEO of CLS, commented: “The introduction of alternative models for membership is an important development in our efforts to broaden access to CLS. Growing our global presence through such expansion efforts is a key part of our growth strategy to further reduce risk, underpin financial stability and deliver the unique benefits of CLS to the global FX market. These two participation models will allow CLS to build on its current growth in membership, and we look forward to welcoming new members.”
CLS Group, a provider of risk mitigation and operational services for the global Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market, announced today that it has introduced two new membership categories to support participation expansion efforts - affiliated settlement membership and non-shareholder settlement membership.
The two new models add to the existing shareholder and central bank settlement membership categories and follow the recent launch of a new scalable market infrastructure interface, aimed at meeting the demands of the future, as reported by Finance Magnates last November.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
Affiliated Settlement
The affiliated settlement membership category allows institutions to have more than one entity within a corporate group become a settlement member. The category is aimed at institutions seeking to segregate their FX businesses to manage their own CLS participation and correspondent banking relationships.
It also removes the reliance on internal clearing and intergroup limits, helps settlement members meet their regulatory ring-fencing Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term and facilitates recovery and resolution planning.
Non-Shareholder Settlement
Non-shareholder settlement members agree to a different commercial construct in lieu of shareholding in CLS Group Holdings. Instead of an investment in shares, non-shareholder settlement members pay a monthly minimum fee for a defined number of months.
Beyond the defined time period, non-shareholder settlement members pay for their submissions. All other membership eligibility criteria remain the same as shareholder settlement members and non-shareholder settlement members have the same rights and responsibilities as shareholder settlement members.
All settlement members, irrespective of their settlement membership category, will benefit from the same risk mitigation, multilateral netting, operational efficiency and business growth opportunities that CLS provides.
David Puth, CEO of CLS, commented: “The introduction of alternative models for membership is an important development in our efforts to broaden access to CLS. Growing our global presence through such expansion efforts is a key part of our growth strategy to further reduce risk, underpin financial stability and deliver the unique benefits of CLS to the global FX market. These two participation models will allow CLS to build on its current growth in membership, and we look forward to welcoming new members.”