VTB Bank has successfully completed the accession to the international clearing system Continuous Linked Settlements (CLS) to carry out settlements for forex transactions as a client. On 18 July 2011, VTB began to carry out settlements in five basic currencies: US dollars, euro, British pounds sterling, Japanese yens and Swiss francs. The bank intends to open accounts in 9 other currencies used in the CLS system. Settlement services are provided by JPMorgan Chase Bank.
By participating in this system, VTB will significantly cut its credit, settlement and operational risks arising in forex transactions between counterparty banks located in various time zones, and to increase the volume of such transactions with counterparties.
VTB membership in the CLS system will help to improve the quality of services rendered by the bank to its customers and counterparties.
The CLS system, founded in 2002, is a system of multilateral netting for forex transactions. The system serves about 95% settlements for forex transactions in 17 currencies, totaling about 58% of all forex transactions globally. On average, about 500,000 transactions are carried out on each operational day, and the average volume of daily transactions in the system amounts to approximately USD 1.7-1.8 trillion. Settlements in the CLS system are made in 17 currencies (Australian dollar, Canadian dollar, Danish krone, Pound sterling, Hong Kong dollar, Japanese yen, South Korean won, Norwegian krone, Singapore dollar, New Zealand dollar, South African rand, Swedish krona, Swiss franc, US dollar, euro, Mexican peso and Israeli shekel).