CLS Group Holdings AG ("CLS Group") announces that Lloyds Banking Group [LLOY] and Swedbank [SWED] have become Shareholders of CLS Group, bringing the total number of banking and financial institutions as Shareholders to 72. The two banks join a group that comprises many of the world's largest commercial and investment banking organisations.
As the provider of the global banking settlement system for the foreign exchange market, CLS links 17 of the world's central banks and many of the world's leading financial institutions. In 2010 CLS has settled an average daily volume of close to 800,000 instructions and a gross value in excess of US$4.1 trillion. In November it settled a new record volume of 1,936,790 sides in one day.
The latest announcement reflects the ongoing growth of FX trading globally and the increased levels of participation in CLS, from a diverse range of financial institutions. Most recently, Banco Santander - an existing Shareholder of CLS - became one of 61 Member banks to settle payment instructions associated with FX trades through CLS Bank. Both Lloyds Banking Group and Swedbank have been third party customers of CLS Bank Members for a number of years and plan to become direct Settlement Members of CLS Bank in due course.
Alan Bozian, Chief Executive Officer of CLS Group and President and CEO of CLS Bank said: "We are delighted to welcome both Lloyds Banking Group and Swedbank to our enlarged Shareholder group. The addition of two significant shareholders underlines the continuing interest and focus on risk reduction. We look forward to working closely with both banks to achieve Settlement Member status".
Anders Henrikson, Head of Global Foreign Exchange at Lloyds Banking Group said: "As our clients look to increase their access to the foreign exchange market, eliminating settlement risk has become a major focus for us, and adopting a robust operational infrastructure will further support our risk management systems."
Tomas Hedberg, Head of FX and Fixed Income at Swedbank said: "We are delighted to be joining CLS which is in line with our ambition to further develop our FX abilities. CLS provides us with a high level of security which is crucial for a major player in the finance industry."