CLS Group (CLS), a market infrastructure delivering settlement, processing and data solutions today announced that Absa Bank Limited (Absa) has joined as a settlement member.

Absa joins 66 other leading banks in becoming a settlement member in CLSSettlement, the world’s leading payment-versus-payment settlement service for the global foreign exchange market – which settles USD5 trillion on an average day on behalf of its clients. Absa will benefit from reduced settlement risk, improved efficiencies and increased liquidity to support its currency trading operations.

“I am very pleased to welcome Absa as a direct participant in our settlement service”, said David Puth, CEO of CLS. “Absa has been part of our network since the South African rand was added to CLSSettlement in 2004. This latest development strengthens our presence in South Africa and is further endorsement of our commitment to meeting the evolving needs of our clients.

“Participation in CLSSettlement continues to grow and our settlement members, such as Absa, play a critical role in ensuring market participants have access to the highest standard of risk mitigation to support their trading operations.”

Neil Slabbert, Chief Operating Officer, Corporate and Investment Banking at Absa, commented: “Although Absa has always been a participant in CLS, joining as a member with direct participation in the CLS settlement service is an important milestone for Absa. FX facilitation is a key part of our product offering and mitigating settlement and credit risk is vital considering daily trading values”.