CLS has just announced that it has included China CITIC Bank International Limited (CNCBI) to its CLSSettlement as a third-party client. CLS noted that CNCBI is the first Chinese bank to have access to CLSSettlement.
Industry initiatives such as the introduction of the FX Global Code have further increased awareness of the need to adopt a best practice approach to settlement and post-trade processing among all FX market participants.
Mr Bai Lijun, Executive Director, Alternate Chief Executive Officer and Treasurer, CNCBI, commented on the news:
By becoming a participant in CLSSettlement, CNCBI aims to mitigate settlement risk, reduce operational costs related to FX trading, and create opportunities for business expansion by enabling CNCBI to do more business with a larger number of counterparties.
Margaret Law, Head of Client Management, Asia Pacific, CLS added:
Expanding third-party participation in CLSSettlement is a key part of our business growth strategy in Asia Pacific. CLS was created by the industry for the industry and the addition of CNCBI indicates that third parties are becoming more actively involved in managing settlement risk, as part of a broader movement in the region toward demonstrating best practices and achieving operational and liquidity efficiencies. Overall, this will help to build a more robust global FX market.
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