ABN Amro has been awarded a mandate by FirstRand Bank for third-party continuous-linked settlement (CLS) services in South Africa.The banks have also entered a partnership agreement for the provision of private-labelled fourth-party CLS services across Africa, and ABN Amro said the agreement will mean that FirstRand is one of the first banks on the continent to go live with third-party CLS services.
“With the addition of the Rand to the growing list of CLS currencies, there is now an even greater imperative for South African organisations to adopt this settlement system,” said Sam Zavatti, senior vice-president for financial institutions and the public sector at ABN Amro.
CLS is a global system to reduce foreign exchange transaction risk and is designed to settle trades on a net-funded basis over a period of time when country-specific real-time global settlement systems overlap.
More on Regulation
SSM chair also wants to end rule opt-outs that make banks "look stronger than they really are"
Dodd-Frank and Mifid II won't stop market disorder but will penalise hedgers
Floors framework should not overstate risk, says Sweden's bank supervision chief
RBS risk veteran says banking activities pose greater threat
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.