Forex settlement provider CLS and analytics and solutions provider IHS Markit have announced that HSBC has joined the cross-currency swaps service. With the latest addition, the settlement members live on the service are now nine.
Lisa Danino-Lewis, Global Head of Sales at CLS, said:
We are delighted to welcome HSBC as the latest participant to join our cross-currency swaps service. As more settlement members join the service, they will benefit from significant operational and funding efficiencies. CLS has long advocated for greater PvP adoption to mitigate FX settlement risk, and by increasing cross-currency swap flows to CLSSettlement, HSBC’s participation will help to achieve that.
Growing cross-currency swap flows to CLSSettlement supports the policymakers and regulators’ call to rise payment-versus-payment (PvP) adoption across the industry for settlement risk mitigation. The rising trend of increasing global trading of currencies that do not have PvP settlement mechanisms has been prominent in recent years. International standard setting bodies, such as the CPMI and the Global Foreign Exchange Committee, are addressing this by exploring ways to increase the level of PvP settlement in the FX market