CLS, US settlement services provider in the foreign exchange market, announced yesterday the first Japanese manufacturing company to access CLSSettlement as a third-party participant, Sumitomo Electric Industries (SEI).
SEI is manufacturer of electric wire and optical fiber cables and is ranked in the Fortune Global 500. The company has a diverse global business portfolio in the automotive, infocommunications, electronics, environment and energy, and industrial materials segments. SEI is settling its FX transactions in CLSSettlement through Sumitomo Mitsui Banking Corporation (SMBC), its third-party service provider. SMBC is supported by Bloomberg’s FX Confirmation Matching Service (CMS) post-trade processing technology.
SEI’s presence marks a significant landmark for the Japanese FX market but also the growth in CLSSettlement third-party participants in Japan. A number of factors have contributed to reaching this point: since 2018, the number of APAC third parties (regional/third-party banks, funds, corporates and non-bank financial institutions) participating in the settlement service increased by 15% and respective average daily gross values settled increased by 17%. In the same period, the average daily gross values settled by third-party corporates in the region increased as well by over 75%.
Takamasa Matsubaya, Senior Vice President of Transaction Products Development Dept., SMBC, stated:
We are delighted to provide SEI access to CLSSettlement. There is increasing appetite amongst our corporate clients to mitigate settlement and operational risk and we are pleased to be able to support our clients in achieving this.
Tod Van Name, Global Head of FX Electronic Trading, Bloomberg, said:
Our CMS solution provides post-trade connectivity between execution and settlement for institutions that are not SWIFT-enabled, allowing them to access CLSSettlement. SEI’s adoption of the suite of Bloomberg FX solutions optimizes their treasury workflow and achieves advanced automation while meeting the internal market standard with significantly reduced risk.
Margaret Law, Head of Client Development Asia Pacific CLS, commented:
Margaret Law
Large, multinational corporations are increasingly looking for effective, robust and sustainable solutions to enhance the way they manage risks, cash management, liquidity demands and efficiencies in their multicurrency operations. This latest development highlights the continued strong demand from the non-bank community for CLS’s services.
In February Metrobank joined CLSSettlement as a third-party participant as he first Philippine bank to access CLS’s settlement service.
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