Alfa Bank and UBS are becoming partners in CLS
18 Jan 2005
Alfa Bank today announces their partnership with UBS in the settlement of FX transactions through CLS Bank using UBS’s CLS Third-Party services. This agreement provides for the reduction of settlement risk, inherent in traditional FX transactions, while enhancing settlement efficiency, operational management and liquidity.
Continuous Linked Settlement (CLS), the global initiative designed to reduce cross-border settlement risk, initially in the foreign exchange markets, went live more than two years ago. CLS marks a watershed in the evolution of foreign exchange business. This is due to the significant risk reduction and cost savings it delivers to active market participants. In November of this year, CLS settled more than 140,000 sides a day valued at over USD 1.6 trillion each day. After just over two years of production, CLS settled more than 50 million sides with a gross value of almost USD 600 trillion.
Seth Cohen, Global Head of Bank Marketing at UBS Investment Bank, London said, “UBS is pleased to provide CLS third-party services to Alfa Bank, one of the leading banks in Russia. We believe that Alfa Bank’s participation in CLS sets an example that other risk-aware Russian banks will follow.”
Comments Sergey Rodionov, Director, Capital Markets, Alfa Bank, “The uptick in business we have been experiencing demands that we identify and engage with the most suitable partner and for us, UBS meets and exceeds our requirements. Their capability as a technology and risk management partner is exceptional. We anticipate significant efficiencies and economies as we move ahead as well as overall volume expansion”.
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