FAB Signs Testing and Trialling Agreement with CLS for ‘CLSNet’

Published January 4th, 2021 - 11:53 GMT
FAB Signs Testing and Trialling Agreement with CLS for ‘CLSNet’
FAB, which has marked another regional first through this agreement, will be able to automate and standardise the netting calculation and reconciliation process with counterparties by using CLSNet, thereby increasing efficiencies and reducing potential operational discrepancies.
Highlights
Being the first mover in the Middle East showcases FAB’s commitment to embracing innovation, particularly as a specialist in emerging markets.

First Abu Dhabi Bank (FAB), the UAE's largest bank and one of the world's largest and safest financial institutions, has signed a testing and trialing agreement with CLS for its confirmation, matching, and netting service ‘CLSNet’.

FAB, which has marked another regional first through this agreement, will be able to automate and standardise the netting calculation and reconciliation process with counterparties by using CLSNet, thereby increasing efficiencies and reducing potential operational discrepancies.

Netting – which offsets receivables against payments due and therefore reduces net payments and saves transaction costs – minimises FAB’s exposure with counterparties through reduced settlement nationals and subsequently improves credit line efficiencies. In the FX Global Code, netting is recommended to manage counterparty risk and reduce settlement risk.

Anan Samaneh, SVP & Head of FXMM & Control Operations, FAB, said: “This agreement with CLS highlights FAB’s importance as a leader in the global FX market. Being the first mover in the Middle East showcases FAB’s commitment to embracing innovation, particularly as a specialist in emerging markets. We hope our vision to constantly grow stronger will spur other organizations in the region to similarly participate in this netting and confirmations system and improve standards across the board.”

Keith Tippell, Head of Product, CLS, commented: “The addition of FAB demonstrates the appeal of CLSNet to FX market participants trading in emerging market currencies. Given the sharp focus on settlement risk mitigation across the industry, CLS is investing further in evolving CLSNet to ensure broad-based adoption and, additionally, exploring new functionality related to liquidity optimisation and payment certainty.”

Background Information

First Abu Dhabi Bank

FAB, the UAE’s largest bank and one of the world’s largest and safest institutions, offers an extensive range of tailor-made solutions, and products and services, to provide a customised experience. Through its strategic offerings, it looks to meet the banking needs of customers across the world via its market-leading Corporate and Investment Banking and Personal Banking franchises.

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