Latest news with #FinancialInstitutions
Finextra
5 days ago
- Business
- Finextra
ABN Amro joins CLSSettlement
CLS, a financial market infrastructure group delivering settlement, processing and data solutions, today announced that ABN AMRO has re-joined CLSSettlement as a settlement member effective May 5. 0 The bank joins 73 other leading banks in becoming a settlement member in CLSSettlement. ABN AMRO was part of the first group of settlement members that went live in CLSSettlement when the service launched in 2002. It subsequently transitioned to indirect participation as a third-party participant in 2009. The bank's recent decision to re-join as a settlement member highlights its commitment to reducing FX settlement risk and improving operational efficiency through payment-versus-payment (PvP) solutions. CLSSettlement is recognized as the global standard for FX settlement risk mitigation, settling over USD7 trillion of payment instructions daily across 18 of the most traded currencies. As the FX market evolves, the demand for secure and efficient settlement mechanisms continues to grow, particularly among financial institutions seeking to align with the settlement risk best practices outlined in Principle 35 of the FX Global Code1. Additionally, ABN AMRO will offer third-party access to CLSSettlement for its clients, further demonstrating its commitment to implementing robust FX settlement risk management practices and operational excellence within the broader FX ecosystem. Lisa Danino-Lewis, Chief Growth Officer, CLS said: 'We are delighted to welcome ABN AMRO as a settlement member to CLSSettlement. The bank's decision reflects the wider benefits of CLS's PvP settlement system, such as our approach to multilateral netting and the in/out swap tool which delivers capital and liquidity efficiencies. Settlement members who use both solutions only fund around 1%2 of the total value of their payment instructions on a typical day, enabling cash flow to be available for other business operations like trading, sales and business growth.' Jacco Keijzer, Head of Global Markets, ABN AMRO commented: 'Mitigating FX settlement risk has always been a priority for ABN AMRO. As a long-standing participant in CLSSettlement, we recognize the value it brings to our operations while supporting our adherence to global best practices. Becoming a settlement member reflects our dedication to creating a more robust and efficient FX ecosystem, while ensuring our FX operations uphold the highest standards of operational efficiency and risk mitigation.'
Finextra
03-06-2025
- Business
- Finextra
Lloyds to release FX execution algorithm in partnership with BNP Paribas
Lloyds today announced a partnership with BNP Paribas to offer its corporate and financial institution clients access to market-leading FX Execution Algorithms (EAs). 2 The partnership will see Lloyds deliver an FX Algorithmic Execution Service supported by BNP Paribas' leading edge solutions - helping clients to execute large FX trades more efficiently, while retaining transparency and control through robust Transaction Cost Analysis (TCA). Execution Algorithms now represent a growing share of global spot FX volumes, particularly among buy-side participants, as demand for data-driven execution continues to rise. These tools offer sophisticated capabilities for hedging large exposures and can provide clients with detailed analytics to support trading decisions, helping to demonstrate best execution. Lloyds clients will gain access to the full algo technology stack, which includes flexible execution strategies tailored to individual trading objectives. This will allow users to define strategies aligned with their risk appetite, supported by interactive features such as limit pricing and start/stop times. Clients can amend, pause, resume, or cancel orders mid-execution, while benefiting from real-time analytics, comprehensive TCA reporting, and dedicated user support. This partnership marks a significant milestone in our commitment to continually invest in enhancing our clients' experience. As FX market and risk dynamics shift, integrating algorithmic execution technology into our Lloyds platform ensures we continue to offer market leading FX solutions to meet the needs of our clients. Rob Hale Head of Financial Markets at Lloyds We're excited to partner with Lloyds and to expand the availability of next generation algorithms to a new group of clients. We are actively expanding our footprint using exclusive offerings in target markets as we continue to develop and refine our platform. Asif Razaq Global Head of FX Automated Client Execution at BNP Paribas
Zawya
29-05-2025
- Business
- Zawya
UAE Central Bank imposes financial sanction on exchange house
ABU DHABI - The Central Bank of the UAE (CBUAE) imposed a financial sanction of AED100 million on an exchange house, pursuant to Article (137) of the Decretal Federal Law No. (14) of 2018, regarding the Central Bank and Organisation of Financial Institutions and Activities, and amendments thereto. The financial sanction is based on the results of the findings of examinations conducted by the CBUAE, which revealed significant failures in the exchange house's Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations framework, and related regulations. The CBUAE, through its supervisory and regulatory mandates, endeavours to ensure that all exchange houses, their owners, and staff abide by the UAE laws, regulations and standards established by the CBUAE to maintain transparency and integrity of the financial transactions and safeguard the UAE financial system.
CBS News
27-05-2025
- Business
- CBS News
What's the CD account interest rate forecast for June 2025?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. CD account interest rates could change again in June, depending on several timely factors. Getty Images While certificate of deposit (CD) rates have dipped slightly over the past year, they're still elevated, with some financial institutions offering yields as high as 4.40%. However, rates could fall in the coming months if the Federal Reserve follows through on expected interest rate cuts this year. While the Fed doesn't directly set CD rates, these yields often loosely mirror Fed policy decisions. As of May 27, 2025, the CME Group's FedWatch tool shows a 94.4% chance that the Federal Reserve will hold its target rate steady at 4.25% to 4.50%, and a 5.6% chance of a 0.25 percentage point cut. Still, the Fed has previously pointed to one or two rate cuts by the end of 2025. That suggests rate cuts later this year are more likely than in the near term. If true, savers have a limited window to lock in current high yields. Knowing the direction CD rates are headed may help you make smarter decisions about when to open a CD and what term length to choose. Below, we'll dive deeper into the most likely scenarios for CD rates in June, based on expert analysis and opinion. See how much you could earn with a top CD rate here. What's the CD account interest rate forecast for June 2025? Here are three potential CD account interest rate scenarios that could occur this June, according to the experts we spoke to: CD rates could drop While most economists and rate-watchers don't anticipate the bank to cut the federal funds rate in June, it remains a distinct possibility. If that happens, CD rates could begin to decline shortly after, especially for short- and medium-term certificates, says Michael Crossley, vice president of Treasury Processing at America First Credit Union. "If the Fed were to cut rates at the June meeting, overall CD yields would start to decline," he said "When the Fed makes a rate cut, it decreases funding costs for banks and credit unions. This has a residual incentive to decrease higher yields on deposits," he adds. Still, the timing of those changes won't be the same across all banks. "CD pricing doesn't always drop overnight," Crossley said. "There can be a lag in timing when the Fed adjusts their rate and when CD rates adjust." Derik Farrar, head of Everyday Banking & Borrowing at U.S. Bank, expects banks to act fast if cuts do happen. "I expect most banks to adjust quickly, as the industry entered 2025 expecting rate cuts that haven't materialized," he said. Lock in a high CD rate before rates drop now. CD rates could stagnate This is the most likely scenario, especially since most analysts expect the Federal Reserve to pause rates at its June meeting. Late last year, the Fed signaled that rate cuts were likely in 2025, before clarifying there would be fewer rate cuts. As of May 2025, the Fed has maintained its target rate at 4.25% to 4.50%, keeping rates paused at every meeting so far this year. At its May meeting, Federal Reserve Chair Jerome Powell reiterated, "We're in the right place to wait and see how things evolve. We don't feel like we need to be in a hurry. We feel like it's appropriate to be patient." As noted, most experts project continued economic uncertainty will lead to another rate pause in June. That likely means continued stagnation in CD rates. As Farrar explains, "Consensus expectations generally drive CD pricing because banks balance their maturities with new originations." Crossley adds that CD rate movements are influenced by more than Federal Reserve monetary policy. "CD rates are not set arbitrarily. We monitor not only Federal Reserve policy, but also internal liquidity needs, loan growth, member behavior, competitive market and economic conditions. Right now, the cost of attracting deposits is high based on previous years comparison." Even though the Fed's policy plays a big role, institutions may also stick with current yields unless their own deposit needs or other market conditions incentivize them to change their CD rates this year. "Trying to guess changes in the interest rate market with any consistency is just as impossible as guessing short-term stock market returns," says David Shotwell, president of Shotwell Rutter Baer Financial Planners. "They will adjust to market forces which cannot be predicted." CD rates could increase A rise in CD rates this June is highly unlikely, and the CME FedWatch Tool gives a 0% chance of a rate hike at the next Federal Reserve meeting. Still, there is a scenario where the Fed could bump up the interest rate. Farrar, who doesn't project an increase, points out that higher inflation could shift the Fed's stance. "Inflation or inflation expectations triggering a different outlook from the FOMC would be the driver for rates to rise in June," he said. Crossley notes that banks could conceivably raise CD rates based on specific needs, such as unexpected deposit outflows, rising loan demand or balance sheet strategies. He adds that competition is always a factor. "In markets where institutions are aggressively competing for deposits, one or two may increase rates, in which others will follow suit," he says. The bottom line Understanding where CD rates may be headed can help guide your savings strategy, but that shouldn't be the only factor in your decision. It's just as important to consider the purpose of the money you're setting aside. As Shotwell explains, "We urge clients to not worry about the rate on CDs, but rather the role CDs play in their portfolio. Cash investments, which include money markets and certificates of deposit, are there for safety and liquidity rather than long term growth." Shotwell recommends creating a CD ladder to stagger maturity dates and keep your funds accessible over time. If you anticipate the Fed lowering rates in the coming months, opening a CD now could help you lock in a higher rate while it's still available.
Zawya
19-05-2025
- Business
- Zawya
Ministry of Finance organises awareness session in the UK as part of the 'UAE Global Cadres' initiative
London: The Ministry of Finance, in cooperation with the UAE Embassy in the UK and the Education and Technology Sciences Attaché Office, hosted an awareness session for Emirati students studying in the UK. The event was held as part of the Ministry's 'UAE Global Cadres', an initiative that seeks to empower Emirati youth and broaden their exposure to professional and training opportunities within major international financial institutions. Building Professional Relationships Ali Abdullah Sharafi, Acting Assistant Undersecretary for International Financial Relations at the Ministry of Finance, stressed that the UAE Global Cadres programme plays a key role in opening up new horizons for young Emirati talents, adding that the programme is designed to raise awareness among Emirati youth about the work environment within international financial institutions and prepare them for internships, secondments, and employment opportunities with these entities. Sharafi added that the initiative aims to help students build international networks and enable them to contribute to global decision-making platforms. Meanwhile, Sheikh Khalid Saud Al Qasimi, Deputy Chief of Mission at the UAE Embassy in London, reaffirmed the country's commitment to supporting its students overseas. 'We firmly believe in the importance of preparing a generation of young Emiratis who are empowered, well-informed about international systems, and capable of representing the UAE on the global stage,' he said. He noted that the session has provided a platform for promoting dialogue and forging long-term professional relationships that extend well beyond graduation. For his part, Abdulrahman Al Dhaheri, Acting Education Attaché at the Office of Education and Technology Affairs at the UAE Embassy in the UK, stated: 'The Ministry of Higher Education and Scientific Research's participation in the UAE Global Cadres initiative reaffirms its commitment to empowering students on scholarship by equipping them with the skills and experiences necessary to excel in international work environments, particularly in the financial, economic, and political sectors. 'We truly believe it's important to prepare a generation of confident, capable Emiratis who can represent the UAE proudly in global organisations and play an active role in shaping decisions on the international stage,' Al Dhaheri said. He added: 'What's really exciting about this session is how it brings different parts of the government together to support students in a practical way. It's an opportunity for strengthening dialogue, networking, and building relationships that can help students both during their studies and as they start their careers. It also aligns closely with the UAE's aspirations for leadership and global competitiveness.' Presentations The gathering featured presentations by representatives from leading international financial institutions, including the World Bank Group, the European Bank for Reconstruction and Development (EBRD), and the International Finance Corporation (IFC). Speakers outlined recruitment pathways and professional development opportunities at their respective organisations, detailing flagship programmes for emerging talent, application procedures, eligibility criteria, and high-demand areas of specialisation. The event also included an interactive session, providing students the opportunity to engage directly with representatives. Many participants voiced interest in learning how to navigate multicultural work environments and advance their careers on a global scale. This session is part of a series of awareness-raising activities organised by the Ministry of Finance, in collaboration with the Ministry of Foreign Affairs, across key global capitals that host major international financial institutions. These sessions seek to familiarise Emirati students with the training and career opportunities available within these global entities. Earlier last month (April), the Ministry of Finance officially launched the 'UAE Global Cadres', an initiative designed to introduce Emirati students and professionals to opportunities available in international financial organisations. The initiative aims to empower young people by equipping them with the knowledge and skills necessary to launch successful international careers, in line with the aspirations of the UAE's wise leadership and its vision. Through this programme, the Ministry seeks to strengthen the UAE's presence within international financial institutions and increase the contribution of national talent to advancing global sustainable development goals. The initiative also seeks to build a strategic network of relationships that will enhance the competitiveness and capabilities of Emirati professionals in key sectors.
