Mizuho Corporate Bank has joined the CLS Aggregation Service (CLS AS), operated by CLS Group and Traiana, for trade compression in the foreign exchange (FX) market.
CLS, or continuous-linked settlement, is a risk mitigation utility for the FX markets, which aims to reduce the risk of trade failure by counterparty default, also known as Herstatt risk. CLS AS, as a compression service, aims to reduce operational risk in a post-trade context, through streamlining workflows and standardizing pre-settlement processes.
"This is another significant milestone for CLS Aggregation Services as we welcome Mizuho as a participant," says David Puth, CEO at CLS Group. "We have seen strong growth in volumes for the service over the past year, highlighting the role it plays in both reducing risk and further strengthening the FX market's global infrastructure."
Mizuho joins a raft of international banks on the service, including Bank of America Merrill Lynch, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley, and RBS.
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