Nomura Becomes a Direct Settlement Member of CLS
London, July 19, 2010 – Nomura, the global investment bank, today announces that it has become a shareholder and a settlement member of CLS Group, the global banking settlement system for the foreign exchange market.
Nomura was previously a third party member of CLS and the move to become a shareholder and direct settlement member allows the bank to effectively reduce settlement risk in its global foreign exchange transactions.
Richard Gladwin, Head of Global Foreign Exchange at Nomura said: "As a leading investment bank and global foreign exchange broker, Nomura is committed to growth and the ongoing evolution of its risk management and operational efficiency programmes. Becoming a shareholder and settlement member of CLS provides an important step towards this goal and ensures Nomura continues to offer the best possible proposition for its clients and investors."
Nomura is the 61st financial institution to become a direct settlement member of CLS and the bank joins a group that comprises many of the world's largest commercial and investment banking organisations.
Alan Bozian, Chief Executive Officer of CLS Group and President and CEO of CLS Bank said: I am delighted an institution of Nomura's scale and global reach has joined our shareholder group and become a direct settlement member. This reiterates the critical role financial institutions see us playing in providing high quality risk reduction, processing efficiency solutions and liquidity benefits for the foreign exchange community."
Nomura is committed to increasing depth in its existing businesses while strategically broadening its franchise into new markets as it achieves its goal of becoming the next generation investment bank.
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Notes to editors:
Nomura is a leading financial services group and the preeminent Asian-based investment bank with worldwide reach. Nomura provides a broad range of innovative solutions tailored to the specific requirements of individual, institutional, corporate and government clients through an international network in over 30 countries. Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs over 26,000 staff worldwide. Nomura's unique understanding of Asia enables the company to make a difference for clients through three business divisions: retail, wholesale (global markets, investment banking, and other wholesale), and asset management. For further information about Nomura, please visit www.nomura.com.
CLS Bank provides the largest multi-currency cash settlement system, eliminating settlement risk for over half the world's foreign exchange payment instructions. Owned by the foreign exchange community, CLS delivers greater operational efficiency when settling payment instructions related to trades executed in six traded financial instruments and in 17 major currencies (US Dollar, euro, UK Pound, Japanese Yen, Swiss Franc, Canadian Dollar, Australian Dollar, Swedish Krona, Danish Krone, Norwegian Krone, Singapore Dollar, Hong Kong Dollar, New Zealand Dollar, Korean Won, South African Rand, Israeli Shekel and Mexican Peso). CLS Settlement is the only means by which settlement risk can be eliminated with finality using a unique combination of payment versus payment in central bank funds, multilateral payment netting and a standard legal framework, supported by a robust and resilient infrastructure. In 2010 CLS is settling an average daily volume of 800,000 instructions with an average daily value of US$4 trillion. In June it settled a new record volume of 1,758,902 sides in one day. Continued growth in participation has resulted in the bank now settling in excess of 75% of the available eligible market trades. In 2009, participation in CLS increased by 70% and now comprises over 8,700 participants. CLS currently settles in 17 major currencies, which account for 95% of the daily value traded. CLS Bank is based in New York and is an Edge Corporation bank supervised by the Federal Reserve.
CLS Group Holdings AG is owned by some of the world's leading financial services institutions. Each Shareholder has an equal vote in the governance of the CLS Group Holdings. Membership in CLS Bank is generally limited to these Shareholders and their affiliates.
A Settlement Member must have proven financial and operational capabilities and sufficient liquidity to support its financial commitments to CLS Bank. Each Settlement Member has a single multi-currency account with CLS Bank. Settlement Members may submit payment instructions relating to their own FX transactions as well as the FX transactions of their customers directly to CLS.
For further information, please visit the CLS website at www.cls-group.com