CLS - $4.8 trillion a day in 2011!

When I saw the numbers for CLS in the ECB figures yesterday, my jaw dropped. The table listed "CLS" as 774 trillion euros in 2010, plus some additional numbers for Euros, Sterling and Danish and Swedish currency.

I had a look at CLS's website where I found a press release published on the 6th January 2012 which talks about the scale of foreign exchange transactions handled by CLS in 2011. I quote

"In December, CLS settled an average daily value of US$4.56 trillion, down slightly on November (US$4.63 trillion) due to the holiday season. Average daily volumes during December were also down at 737,443 (November 2011: 840,405), this is, however, an increase of 18.8% over the same period in 2010.

For 2011, average daily volumes settled were up 3% on 2010 (2011: 820,495 vs 2010: 792,900) and average daily values were up 17% (2011: US$4.8 trillion vs 2010: US$4.1 trillion)."

Let's assume 250 trading days a year. That's 1200 trillion dollars for 2011. Very conveniently, CLS published a report in February 2011 called "CLS market share" in which they estimate that they handle 68% of foreign exchange transactions - based largely on comparing their numbers with the results of the BIS Triennial Report. That means that we can assume that the global total was around 1800 trillion dollars for 2011.

CLS also proudly boasted that on Wednesday 21st September 2011 they broke all previous records

"Alan Bozian, CEO of CLS Group and President and CEO of CLS Bank International, said "The total value settled was US$8,992 billion and CLS Bank was able to settle this with a total pay-in requirement of US$54 billion""

Congratulations.

I defy anyone to explain why it would not be perfectly reasonable to put a 0.1% Financial Transaction Tax on this activity. This sort of pointless trading, presumably involving a large percentage High-Frequency Algorithmic trading, could be massively reduced without having any impact on the functionning of the real economy. And if the traders continued, then that would generate 1.8 trillion dollars of much needed revenue for governments.

I invite all the directors of CLS to explain to the 99% why we pay 20% Value Added Tax on most transactions we make, whereas CLS customers pay only a small fee to CLS. I actually  know the truthfull answer: "There is no VAT to pay on foreign exchange transactions, because it doesn't add any Value".

Here are the names of the Senior Management and the Directors. Perhaps they will find my blog when they Google their names. I look forward to hearing their comments.

Senior Management Team

Alan Bozian	Chief Executive Officer, CLS Group Holdings; President and CEO, CLS Bank International
Peter Slater	Deputy Chief Executive Officer, CLS Group Holdings; Chief Executive Officer, CLS Services Ltd.
Sankar Aiyar	Chief Technology Officer
James Holdcroft	Chief Legal Officer
Naresh Nagia	Chief Risk Officer
Richard Kerschner	Head of Strategic Initiatives
Kathryn Herrington	Head of Human Resources
Chris Power	Chief Financial Officer
Rachael Hoey	Director of Business Development
Sean Daly	Programme and Service Delivery Director

CLS Bank International
Gerard Hartsink	Chairman
Gordon Sangster	Deputy Chairman
Alan Bozian	President & Chief Executive Officer
Phil Armstrong	Director
Frederic Boillereau	Director
Mirco Brisighelli	Director
Andrew Cox	Director
John Gieve	Outside Director
Lars Hakanson	Director
Kenneth Harvey	Outside Director
Roger Hawes	Director
Yumesaku Ishigaki	Director
Tomoyuki Isshiki	Director
Niels Nordby Kjaer	Director
Romeo Lacher	Director
Khiang Tong Lim	Director
Hays Littlejohn	Director
Christine Mead	Outside Director
Bryan Osmar	Outside Director
Paul Riordan	Director
Bharat Sarpeshkar	Director
Rick Sears	Director
Jason Vitale	Director
CLS Group Holdings AG
Gerard Hartsink	Chairman
Bharat Sarpeshkar	Deputy Chairman
Alan Bozian	Chief Executive Officer
Phil Armstrong	Director
Frederic Boillereau	Director
Mirco Brisighelli	Director
Andrew Cox	Director
John Gieve	Outside Director
Lars Hakanson	Director
Kenneth Harvey	Outside Director
Roger Hawes	Director
Yumesaku Ishigaki	Director
Tomoyuki Isshiki	Director
Niels Nordby Kjaer	Director
Romeo Lacher	Director
Khiang Tong Lim	Director
Hays Littlejohn	Director
Christine Mead	Outside Director
Bryan Osmar	Outside Director
Paul Riordan	Director
Gordon Sangster	Director
Rick Sears	Director
Jason Vitale	Director
CLS Aggregation Services LLC
Alan Bozian	Chairman
Rachael Hoey	Director
Zar Amrolia	Director
Andrew Coyne	Director
Thomas Gillie	Director
Roger Hawes	Director
Gil Mandelzis	Director
Todd Miller	Director
Troy Rohrbaugh	Director
Steven Cho	Director
Todd Sandoz	Director
Rick Sears	Director