Research Predicts 150 Per Cent Rise In CLS Bank Volume

The volume of instructions submitted through CLS Bank is predicted to increase 150 per cent by the middle of 2005, according to results of TowerGroup research. The research, conducted amongst 40 of CLS Bank’s Settlement Member banks, representing some of the world’s largest global financial institutions, found that the main motivation for joining CLS Bank was the reduction of settlement risk. Over 95 per cent stated that this was an important or very important reason for their participation. This was followed by the avoidance of regulatory action (88 per cent) and efficiency – to improve STP rates and reduce errors (65 per cent). CLS Bank currently settles on average almost 70,000 payment instructions per day with an average gross value of approximately $US 800 billion, with over $US 50 trillion settled to date. According to the research, it is expected that the total volume will be 100,000 instructions per day by mid-2003 and 150,000 instructions per day by mid-2004 – growing to 176,000 instructions per day by the middle of 2005.

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