London - 23 February 2004 - JPMorgan Treasury Services (TS)a unit of JPMorgan Chase Bank and a leader in global payment, trade and treasury services management, automated cash and treasury management solutions, has been selected by the New York Clearing Corporation(r) (NYCC(r)), the clearing house subsidiary of the New York Board of Trade(r) (NYBOT(r)), to be its Continuous LinkedSettlement (CLS) service provider.
The NYCC will streamline the settlement of its quarterly foreign currency futures contracts by connecting to CLS, a Payment vs. Payment settlement system which helps to remove risk. NYCC settles approximately USD 7 - 10 billion in ten currencies, four times a year, and settlement through CLS will significantly reduce the settlement and operational risk in these transactions. Using CLS will also enable NYCC to net capital inflows and outflows, mitigating systemic risk. NYCC is able to use CLS via JPMorgan Access(SM) - JPMorgan's web-based Global Client Access electronic banking platform.
George Haase, President of the NYCC, comments, "The New York Clearing Corporation is always looking to partner with companies which help us to streamline and modernise our operations, as one of our main goals is to offer our Members more services at less cost. Our long-standing and successful relationship with JPMorgan made them the obvious choice as the Third Party Service Provider for the NYCC. We look forward to developing the benefits of CLS, delivered by a trusted agent with extensive market experience."
Brian Wedge, CLS Global Product Manager EMEA, JPMorgan TS, comments, "A growing number of non-bank counterparties are using CLS. With 32 third party mandates, JPMorgan has cemented its leadership position in the CLS market and is ideally placed to provide NYCC with the very highest level of support in maximising their settlement efficiency."
Stefanie Davidson, Tom Coombes, +44 (0)20 7832 0800