CLS, , announced today that Banco Monex will become a settlement member of CLSSettlement. As the name suggests, CLSSettlement provides payment-versus-payment settlement services for the foreign exchange (FX) market.

Since its launching in 2002, 69 banks, and thousands of 3rd party service providers, have joined CLSSettlement as members. Currently, the service settles an average of $5 trillion worth of trades in the FX market every day. Praising CLSSettlement, Banco Monex’s CEO Mauricio Naranjo, described his company’s move as an “important milestone.”

Banco Monex’s addition to the membership ranks of the service is likely to increase that settlement value figure. The Mexican Peso is the most actively traded currency in the Latin American region, and Banco Monex’s flow of cash will only increase CLSSettlement’s settlement activities.

Increasing liquidity for the Mexican market

The move will also be beneficial to Banco Monex in a number of ways. For instance, the firm will able to reduce its settlement risk and increase its liquidity to further develop its FX operations.

Banco Monex will also become , something noted by the latter’s CEO, David Puth. Discussing the addition of Banco Monex to CLSSettlement’s ranks, Puth said: “I could not be more pleased to welcome Banco Monex as the first Mexican bank to participate directly in our settlement service. Participation in CLSSettlement continues to grow, and our settlement members, such as Banco Monex, play a critical role in ensuring market participants have access to the highest standard of risk mitigation to support their trading operations.”