1 / 21

CLS update for the Turkish banking industry 16 November 2006

CLS update for the Turkish banking industry 16 November 2006. Rob Close President and CEO CLS Bank International. CLS today. CLS - The New Market Standard. Eliminates FX settlement risk Settles fifteen currencies Uses a payment versus payment (PvP) basis

slade
Download Presentation

CLS update for the Turkish banking industry 16 November 2006

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CLS update for the Turkish banking industry16 November 2006 Rob Close President and CEO CLS Bank International

  2. CLS today

  3. CLS - The New Market Standard • Eliminates FX settlement risk • Settles fifteen currencies • Uses a payment versus payment (PvP) basis • Multi-laterally nets all obligations per value date. • CLS settles: • FX spot • FX forwards • FX option exercises • FX swaps

  4. CLS Bank is Unique • Only global settlement system • Bankers’ Bank for FX Settlement • Real-time links to Central Banks • Corporate structure and governance model • Legal governance and regulation • Level playing field for Shareholders

  5. Settlement Accounts with 15 Central Banks

  6. CLS Shareholders Australia - Australia & New Zealand Banking Group • Commonwealth Bank of Australia • National Australia Bank • Westpac Banking Corporation • Belgium - Fortis Bank • KBC Bank • Canada - Bank of Montreal • The Bank of Nova Scotia • CIBC • Royal Bank of Canada • The Toronto-Dominion Bank • China – Bank of China • Denmark - Danske Bank • Nordea • France - BNP Paribas • Caisse Nationale De Credit Agricole • Credit Lyonnais • Société Générale • Germany - Bayerische Landesbank • Commerzbank • Deutsche Bank • DZ Bank • Dresdner Bank • Hypo Vereinsbank • WestLB • Italy – Banca Intesa • UniCredito • Japan - The Bank of Tokyo-Mitsubishi UFJ, Ltd • Mizuho Corporate Bank • Norinchukin Bank • Sumitomo Mitsui Banking Corporation • The Sumitomo Trust & Banking Co., Ltd. • Korea – Kookmin Bank • Korea Exchange Bank • Luxembourg – Dexia Banque Internationale a Luxembourg • Netherlands - ABN AMRO Bank • ING Bank • Rabobank Nederland • Norway – DnB NOR • Singapore - Development Bank Of Singapore • Oversea-Chinese Banking Corporation • United Overseas Bank •South Africa – Absa • Standard Bank •Spain - BBVA • Banco Popular Espanol • Banco Santander Central Hispano • Sweden - Skandinaviska Enskilda Banken • Svenska Handelsbanken • Switzerland - Credit Suisse • UBS • Zurcher Kantonalbank • United Kingdom - Barclays Bank • HSBC Holdings • Royal Bank of Scotland • Standard Chartered Bank • United States - American International Group • Bank of America • The Bank of New York • Bank One • Bear Stearns Securities • Citibank • The Goldman Sachs Group • JPMorgan Chase • Lehman Brothers • Mellon Bank • Merrill Lynch • Morgan Stanley & Co. • Northern Trust Corporation • State Street Bank and Trust Co.

  7. CLS – growing volume and value Volume 270,000 instructions daily (502,384 peak day) Value $2.9 trillion daily ($5.47 trillion peak day)

  8. Growing CLS participation 71 Shareholders, 57 Members, 26 Service Providers

  9. CLS market share

  10. CLS penetration – London and New York CLS estimated market share for spot, swaps and overall market Comparison with aggregated FXC and JSC market statistics for London and New York

  11. Submitting Instructions Funding & settlement Funding completion 07:00 06:30 09:00 12:00 How CLS works - overview

  12. CLS benefits

  13. CLS perceived value Operational Efficiencies & Scale Economics Risk reduction Market growth support Reduced funding

  14. CLS perceived value by sector Banks Banks Corporates Corporates Pension Funds Pension Funds Operational Efficiencies & Scale Economics Risk reduction Investment Funds Hedge / leveraged funds Prime Brokerage / Algo Business Market growth support Banks Reduced funding Banks Corporates Investment Funds Prime Brokerage / Algo Business Prime Brokerage / Algo Business Hedge / leveraged funds Hedge / leveraged funds

  15. Growing FX volume from the fund industry Average foreign exchange trading volumes among fund managers and pension funds increased almost 48% from 2004 to 2005. Source: 2006 Greenwich Associates. Based on a matched sample of 733 respondents. Figures are average annual volume per respondent.

  16. CLS facing the future

  17. Today’s market – challenges and opportunities • FX is an asset class – increasing buy side participation • Programme trading growing but volatile • Hedge Funds and Prime Brokerage driving market growth • Strong growth in FX derivatives, e.g. NDFs & FX option premiums • Growth in emerging markets • Focus on cost reduction

  18. CLS strategy overview New Products – ∆ Value delivered Increase participation Grow volume Reduce unit cost

  19. Future growth areas for CLS • Fund management • Other buy side • Non-Deliverable Forwards • FX Option premiums • Other currencies

  20. Conclusion CLS is • The FX Standard • Delivering Benefits • Extending the Benefits Focused on growth to reduce unit prices

  21. CLS update for the Turkish banking industry16 November 2006 Rob Close President and CEO CLS Bank International

More Related