JP Morgan Treasury Services has been selected by ADM Derivatives and ADM Investor Services to consolidate back office multicurrency clearing activities.

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.