Amid turmoil in the global financial market
cross border inter-bank transactions have soared with CLS Bank
International, the clearing bank of the continuous linked
settlement (CLS) system, reporting record payment instruction
volumes.
cross border inter-bank transactions have soared with CLS Bank
International, the clearing bank of the continuous linked
settlement (CLS) system, reporting record payment instruction
volumes.
The highest volume recorded was on 17 September
when 1.55 million payment instructions were settled, an increase of
38 percent compared with the previous record of 1.148 million set
on 7 July 2008.
when 1.55 million payment instructions were settled, an increase of
38 percent compared with the previous record of 1.148 million set
on 7 July 2008.
The gross value of instructions settled on 17
September was $8.6 trillion with a total pay-in requirement of only
$50 billion, representing a net funding percentage of 0.58
percent.
September was $8.6 trillion with a total pay-in requirement of only
$50 billion, representing a net funding percentage of 0.58
percent.
Indicative of the surge in volume, CLS Bank
normally handles an average daily volume of about 700,000
instructions with a gross value of $4 trillion. CLS Bank volumes
account for about 55 percent of all foreign exchange
settlements.
normally handles an average daily volume of about 700,000
instructions with a gross value of $4 trillion. CLS Bank volumes
account for about 55 percent of all foreign exchange
settlements.
The bank, which is regulated by the US Federal
Reserve, is wholly-owned by CLS Group Holdings which is in turn is
owned jointly by 70 major financial services companies. CLS members
also provide services to non-member third parties which include
3,300 banks, investment funds, brokers and corporates.
Reserve, is wholly-owned by CLS Group Holdings which is in turn is
owned jointly by 70 major financial services companies. CLS members
also provide services to non-member third parties which include
3,300 banks, investment funds, brokers and corporates.
Seventeen currencies are currently eligible for
the CLS system. They are: US dollar, euro, UK pound, Japanese yen,
Swiss franc, Canadian dollar, Australian dollar, Swedish krona,
Danish krone, Norwegian krone, Singapore dollar, Hong Kong dollar,
the New Zealand dollar, Korean won, South African rand, Israeli
shekel and Mexican peso.
the CLS system. They are: US dollar, euro, UK pound, Japanese yen,
Swiss franc, Canadian dollar, Australian dollar, Swedish krona,
Danish krone, Norwegian krone, Singapore dollar, Hong Kong dollar,
the New Zealand dollar, Korean won, South African rand, Israeli
shekel and Mexican peso.
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