Fifth Third Bank Joins CLS Via UBS
Posted by Colin Lambert. Last updated: May 5, 2022
Fifth Third Bank has now gained access CLS Settlement as a third-party participant with UBS, a CLS settlement member, providing access to the service. CLS says the addition of Fifth Third, one of the largest banks in the midwestern United States, represents a significant step forward in CLS Settlement adoption by the US regional banking sector.
It adds it continues to witness increased uptake of CLS Settlement across the FX industry – especially third-party participation, which accounted for 90% of new business growth in 2021. This growth is due to a greater focus on settlement risk mitigation by market participants and their drive to improve operational efficiency and reduce costs, CLS says. In addition, CLS Settlement supports market participants’ adherence to FX best practices as outlined in the FX Global Code, which include the use of payment-versus-payment settlement services wherever practicable.
“We are delighted that Fifth Third has chosen to use CLS Settlement,” says Lisa Danino-Lewis, chief growth officer, CLS . “With the growth in FX trading, settlement risk has become an increasing concern for both the public and private sectors. As a result, it is essential that all market participants – buy side or sell side – implement appropriate FX risk mitigation services such as CLSSettlement.”
Bob Tull, Fifth Third’s global head of fixed income, commodities and currencies (FICC) adds, “Our participation in CLS Settlement allows Fifth Third to further advance our FX platform. Not only will CLS Settlement enable Fifth Third to further mitigate settlement risk and reduce operational costs related to FX trading, but CLS creates opportunities for us to expand our business and enhance our client experience by having access to a wider pool of counterparties.”
Meanwhile, Christian Stolcke, global head of banks at UBS, says, “We’re pleased to be able to work with Fifth Third to mitigate FX settlement risk through CLS. In times of increasing intraday funding and liquidity costs, we believe it’s important to help our regional bank clients access CLS Settlement to free up liquidity while allowing them to expand their current FX relationships.”