PGGM settling forex trades via CLS
NETHERLANDS - PGGM, the €77bn Dutch health care pension fund, is now settling foreign exchange trades via Continuous Linked Settlement through its use of the Misys Treasury Plus automated third-party trade notification service, the provider says.
PGGM decided to move its foreign exchange settlement process to the CLS platform in 2005, Misys added.
"Without using Misys Treasury Plus, PGGM would have had to build a whole new interface directly to its Settlement Member, which would have been costly and time consuming," a statement said.
"Using standard SWIFT messaging, Misys Treasury Plus has given PGGM a cost effective, more efficient and more rapid way to communicate with its CLS settlement member.
The solution automatically generates and delivers trade notification messages to PGGM's chosen CLS member bank, for CLS eligible trades.
PGGM began using the Misys CLS service in February 2006 and is now settling a large percentage of its foreign exchange trades over CLS, with volumes still on the rise.
"PGGM has a long-standing relationship with Misys, using its treasury confirmation matching solution, Misys Treasury Plus, which is fully integrated with our treasury management system," said PGGM's Functional Application Manager
"We submit all of our foreign exchange trades to Misys for matching and it was therefore natural that we should look to them to facilitate the messaging component between PGGM and our chosen CLS Settlement Member.
"We are extremely pleased with the solution that Misys provides and we are now benefiting from the reduction in settlement risk and operational efficiencies that being a CLS participant brings."