The Bank of New York has been appointed by National Bank of Abu Dhabi (NBAD) to provide third party settlement services for Continuous Linked SettlementTM (CLS). CLS is a banking industry initiative designed to reduce risk, increase trading opportunities and reduce costly reconciliation from the settlement of foreign exchange trades.
The arrangement will promote the integration and optimization of National Bank of Abu Dhabi’s treasury, trading, cash management and reporting functions with The Bank of New York’s settlement operation. NBAD has the strongest credit ratings among Middle East commercial banks, assigned A and A-1 for long- and short-term respectively by Standard & Poor’s.
Qamber Ali Al Mulla, assistant general manager and head of international banking of NBAD, said, “We selected The Bank of New York as our CLS partner because of its ability to provide us with a tailored foreign exchange settlements solution that will enable us to better serve our needs and the needs of our clients in the local market.”
William F. Williams, Managing Director and Head of The Bank of New York’s Middle East, Eastern Europe and Africa Division, said, “We provide value to our clients by working with them to create flexible solutions that meet their specific requirements and those of their clients. National Bank of Abu Dhabi will be able to leverage our extensive network and product expertise to transact foreign exchange with reduced settlement risk.”