ADM Derivatives has been newly launched to offer foreign exchange services to ADM Investor Services’ institutional and retail clients and JP Morgan will provide the new entity with a scaleable solution comprised of Continuous Linked Settlement (CLS), third party services and a suite of multicurrency accounts.
ADM Derivatives will benefit from improved liquidity management and investment opportunities, centralised reporting and a single pricing model for all currencies, claims JP Morgan. Both ADM Derivatives and ADM Investor Services are wholly-owned subsidiaries of Archer Daniels Midland Company (ADM).
Tom Kadlec, chief financial officer at ADM Investor Services, says: “When launching ADM Derivatives, we had unique multi-currency settlement requirements. A CLS clearing relationship with JP Morgan allowed us to devise a solution with a single provider, creating operational and cash management efficiencies. We have a long-standing relationship with JP Morgan and look forward to their continued support of ADM Derivatives.”
CLS is an industry initiative designed to reduce the settlement risk associated with FX transactions.
