Highlights of CLS Annual Report 

CLS, a company that operates the largest multicurrency cash settlement system to mitigate settlement risk for the FX transactions of its Members and their customers, has issued a press release to inform that:

Following their Annual General Meeting and shareholder briefing on Tuesday 21 April, they have released their Annual Report and consolidated accounts for activity in 2014.

Highlights of the Annual Report are:

Financial highlights

• CLS posted revenues of GBP183.3 million, an increase of 6% year-on-year
• Total operating expenses were up by 1.6% (GBP2.4 million), mainly due to an expected increase in amortization of GBP4.0 million, following the implementation of major components of our technology program
• Profit after tax increased by over 36% year-on-year from GBP14.6 million to GBP19.8 million, a direct consequence of the revenue growth with only modest cost increases.

Operational highlights

• Daily average volumes in the core service remained stable year-on-year at 801,000 instructions
• Average daily settlement values for 2014 now stand at USD5.1 trillion, up slightly from 2013
• CLS’s 2014 peak value day was in December at USD10.7 trillion, surpassing the previous record from March 2008, achieved on volumes of 2.1 million
• CLS continues to operate a reliable and resilient service meeting the high standards of governance and risk expected of a systemically important financial market utility

The company stated that:

“2014 was a year of contrasts in the foreign exchange market. We saw prolonged low volatility and declining volumes, followed by increased activity in line with the rising dollar. While this had a direct impact on FX volumes settled through CLS, we have continued to deliver every day, while strengthening our service and global reach”.

“Our results demonstrate our financial health, capital strength and operational integrity. We are well placed to deliver our core service while exploring new opportunities to add value for our settlement members and shareholders, through increased participation, additional currencies or new services which leverage our current infrastructure and position in the market”.

Source: CLS – CLS releases its Annual Report

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