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Barclays joins CLS Aggregation

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Barclays Bank has become the latest bank to support the joint venture between CLS Group and Traiana, which provides trade aggregation services to participants active in the over-the-counter FX market.

 
Barclays Capital joins an initial group of eight banks as a CLS Aggregation Participant in CLS Aggregation Service LLC (CLSAS), comprising BoA Merrill Lynch (NYSE: BAC), Credit Suisse (NYSE:CS), Citibank (NYSE:C), Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB), Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE:JPM), Morgan Stanley (NYSE:MS) and Royal Bank of Scotland (RBS.L).
 
CLSAS offers a wide range of benefits for participants, including improving post trade operational efficiencies and costs and boosting business growth. It was established to address the operational challenges of high volume, high frequency trading resulting from the continued growth in FX volumes and the rapid expansion of the FX community. The service matches and compresses trades between CLS Aggregation Parties before downstream processing and settlement in CLS Bank.
 
The service went live in January 2010 and the Founding Aggregation Participants have adopted the service over the course of the year.  It has seen a steady growth in FX volumes as the current Aggregation Parties continue to bring more flow onto the service. This was evidenced on 15 March 2011 when the service processed the highest daily volume recorded so far with 295,984 gross trades aggregated down to 11,788 (a compression rate of 96 per cent and a value of US$286 billion).
 
Alan Bozian (pictured), Chief Executive Officer of CLS Group and President and CEO of CLS Bank says: “CLS Aggregation has taken a step forward today in welcoming another significant FX participant to its community. The steady growth in volumes and further market participation illustrates the fundamental role the service continues to play in securing a safer post trade processing landscape.” 
 
Gil Mandelzis, Traiana’s Chief Executive Officer says: “Rising volumes in the FX markets have highlighted the importance of CLS Aggregation. With the support of nine of the world’s largest banks, the value for existing and future CLSAS participants continues to increase. We look forward to working with this growing group of participants to further improve post-trade processing in foreign exchange”.

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