More NewsCME and Citigroup Announce Futures Delivery Process Via CLS

CME and Citigroup Announce Futures Delivery Process Via CLS

The Chicago Mercantile Exchange has appointed Citigroup Global Transaction Services to provide it with foreign exchange settlement services through CLS Bank, allowing continuous linked settlement (CLS) of CME’s foreign exchange (FX) futures transactions. Settlement via CLS will streamline CME’s quarterly currency delivery process and result in cost savings to CME clearing firms, according to Citigroup. CME’s FX contracts are currently settled four times a year using a process in which orders to pay and receipt of funds are confirmed manually. Linking FX futures settlement into CLS will eliminate the need for exception processing, making it part of the mainstream FX settlement process, added Citigroup. Firms that choose to use CLS settlement will no longer be subject to charges for an Order-To-Pay (OTP) by participating banks, and by extension, will not pay a per-contract Clearing House OTP fee. Clearing firms may choose to use CLS settlement for their euro/U.S. dollar-denominated deliveries beginning with the September delivery. CME intends to make the CLS settlement method available for other CME foreign exchange products at a later date.

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

2m The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

5m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

6m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

6m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

6m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

6m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

6m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

7m Tasja Botha