As some of the new Principles for Financial Market Infrastructures (PFMI) standards are expected to go into effect, as set forth from the IOSCO and BIS, increased capital was needed to help meet anticipated obligations.
The largest mitigator of FX Settlement risk, CLS Group (CLS), today announced the successful completion of an equity capital raise for a net amount of £160 million, according to its official corporate press release.
This new amount will enable the firm to comply with increased regulatory capital requirements, meet operational needs and establish an appropriate capital structure to benefit from future growth in the global FX market, as described in the announcement.
Since the inception of CLS, daily turnover in the global FX market has increased from USD 1.2 trillion to USD 5.3 trillion, according to data from the Bank for International Settlements. During this period, it was noted in the announcement that CLS has achieved a compound annual growth rate of 31.4% in average daily volume.
The PFMIs contain new and more demanding international standards for payment and settlement systems (some 24 principles in total), in order to help ensure that the infrastructure supporting global financial markets is more robust and well-placed to withstand financial shocks.
Accordingly, the PFMIs have been adopted by regulators in certain jurisdictions in which CLS is designated and are expected to be adopted in the remaining jurisdictions, as per the press release.
Following today's successful funding of £160 million, CLS has increased its capital to meet the new capital standards of the PFMIs in the expectation that they will be fully adopted. Helping to facilitate the raising of the capital, J.P. Morgan acted as financial adviser and Niederer Kraft & Frey acted as legal adviser to CLS.
Shareholders Funding
Some of the future benefits mentioned resulting from the increased capitalization are; the capital raise will enable CLS to restructure its balance sheet, invest in technology to enhance operational capability and develop new products and services for the benefit of its members and shareholders.
Commenting in the official corporate press release today about the equity funding, Gerard Hartsink, Chairman of CLS said, "We are grateful to our Shareholders for their continuing support of CLS. We have a unique Shareholder, membership and governance model and are delighted that Shareholders globally have demonstrated their strong support for our business. With our strengthened financial position, we look forward to continuing to fulfill our mission of enhancing financial stability by providing risk mitigation services to the global FX market, for the benefit of our Members and Shareholders."
Also commenting in the official announcement from the company's management, David Puth, CEO of CLS said,"We would like to thank our Members for their capital commitments, which demonstrate their confidence in our business and the importance of the cost efficient services we provide. CLS has proven itself to be critical to the orderly functioning of the global FX market and this capital raise will enable us to comply with increased capital requirements."
Mr. Puth added in the press release, "CLS is now well placed as the global leader in FX settlement risk mitigation services to benefit from growth in the largest and fastest growing financial market. In addition, we are able to continue investing in technology, and new products and services for the benefit of our Members and Shareholders worldwide."
Mr. Puth spoke on a panel just last month pertaining to the issues brought under highlight by the PFMI, during the 35th annual Sibos meeting which took place in Dubai, organized by SWIFT. According to its FXFundamental newsletter, issued in November, during the above mentioned panel, Mr. Puth shared his views on the subject and it was noted that CLS must comply with 19 of the 24 principles under the PFMI.
Further Standardization on the Horizon
In the November newsletter from CLS, Regulation was noted as a hot topic at Sibos and according to panelists, a transparent market infrastructure increases reliability and efficiency, while a lack of harmonization in international rules drives up costs, creating opportunities for regulatory arbitrage.
Today's news follows the announcement from CLS last week of Hirochika Iwadare's appointment to the CLS Group Holdings Board of Directors at an Extraordinary General Meeting of Shareholders held on Monday, November 4, 2013, in Zurich (just a few days after the CLS Hong Kong Office opened), and following a small decline in November volumes.
The largest mitigator of FX Settlement risk, CLS Group (CLS), today announced the successful completion of an equity capital raise for a net amount of £160 million, according to its official corporate press release.
This new amount will enable the firm to comply with increased regulatory capital requirements, meet operational needs and establish an appropriate capital structure to benefit from future growth in the global FX market, as described in the announcement.
Since the inception of CLS, daily turnover in the global FX market has increased from USD 1.2 trillion to USD 5.3 trillion, according to data from the Bank for International Settlements. During this period, it was noted in the announcement that CLS has achieved a compound annual growth rate of 31.4% in average daily volume.
The PFMIs contain new and more demanding international standards for payment and settlement systems (some 24 principles in total), in order to help ensure that the infrastructure supporting global financial markets is more robust and well-placed to withstand financial shocks.
Accordingly, the PFMIs have been adopted by regulators in certain jurisdictions in which CLS is designated and are expected to be adopted in the remaining jurisdictions, as per the press release.
Following today's successful funding of £160 million, CLS has increased its capital to meet the new capital standards of the PFMIs in the expectation that they will be fully adopted. Helping to facilitate the raising of the capital, J.P. Morgan acted as financial adviser and Niederer Kraft & Frey acted as legal adviser to CLS.
Shareholders Funding
Some of the future benefits mentioned resulting from the increased capitalization are; the capital raise will enable CLS to restructure its balance sheet, invest in technology to enhance operational capability and develop new products and services for the benefit of its members and shareholders.
Commenting in the official corporate press release today about the equity funding, Gerard Hartsink, Chairman of CLS said, "We are grateful to our Shareholders for their continuing support of CLS. We have a unique Shareholder, membership and governance model and are delighted that Shareholders globally have demonstrated their strong support for our business. With our strengthened financial position, we look forward to continuing to fulfill our mission of enhancing financial stability by providing risk mitigation services to the global FX market, for the benefit of our Members and Shareholders."
Also commenting in the official announcement from the company's management, David Puth, CEO of CLS said,"We would like to thank our Members for their capital commitments, which demonstrate their confidence in our business and the importance of the cost efficient services we provide. CLS has proven itself to be critical to the orderly functioning of the global FX market and this capital raise will enable us to comply with increased capital requirements."
Mr. Puth added in the press release, "CLS is now well placed as the global leader in FX settlement risk mitigation services to benefit from growth in the largest and fastest growing financial market. In addition, we are able to continue investing in technology, and new products and services for the benefit of our Members and Shareholders worldwide."
Mr. Puth spoke on a panel just last month pertaining to the issues brought under highlight by the PFMI, during the 35th annual Sibos meeting which took place in Dubai, organized by SWIFT. According to its FXFundamental newsletter, issued in November, during the above mentioned panel, Mr. Puth shared his views on the subject and it was noted that CLS must comply with 19 of the 24 principles under the PFMI.
Further Standardization on the Horizon
In the November newsletter from CLS, Regulation was noted as a hot topic at Sibos and according to panelists, a transparent market infrastructure increases reliability and efficiency, while a lack of harmonization in international rules drives up costs, creating opportunities for regulatory arbitrage.
Today's news follows the announcement from CLS last week of Hirochika Iwadare's appointment to the CLS Group Holdings Board of Directors at an Extraordinary General Meeting of Shareholders held on Monday, November 4, 2013, in Zurich (just a few days after the CLS Hong Kong Office opened), and following a small decline in November volumes.
Institutional FX Demand Continues to Climb in April
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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