08.06.2019

First Chinese Third-Party Bank Joins CLSSettlement

08.06.2019
Shanny Basar

CLS, a market infrastructure group delivering settlement, processing and data solutions, announced today that China CITIC Bank International Limited (CNCBI) is the first Chinese bank to access CLSSettlement as a third-party client.

The latest addition of CNCBI in Asia Pacific signifies an overall growth in third-party participation in CLSSettlement throughout the region. This momentum has been driven by a 21% increase in the overall number of third parties (regional/third-party banks, funds, corporates and non-bank financial institutions), as well as the increase of 36% in average daily gross volumes settled by third-party participants in the last three years.

The industry drivers leading to the increased use of CLSSettlement among third-party clients in Asia Pacific include the heightened awareness of risks associated with FX settlement, the ability to demonstrate proactive adoption of global best practices in mitigating risks and establishing stronger controls, the drive to improve operational efficiency, and reduce costs. In addition, 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, said, “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.”

Source: CLS

Related articles

  1. Adding eligible ETFs will support the development of ETFs in Hong Kong and Mainland China.

  2. With Angely Yip, Senior Sales Manager, Chinese Financial Institutions, BNP Paribas Securities Services

  3. Contributed Content

    What Next for Trading China?

    China's equity markets continue to rapidly evolve.

  4. It has become the first EU bank to facilitate QFI access to stocks listed in Beijing.

  5. Lack of connection between the two markets in China has resulted in poor price discovery and liquidity.