This move is part of CLS’ ongoing commitment to increasing the number of Asian currencies it settles, servicing the needs of its local Settlement Members and further reducing systemic risk in the region’s currency markets.
CLS currently mitigates settlement risk for a total of 17 currencies, including those in the Asia region, the Japanese yen, Hong Kong dollar, Singapore dollar, Australian dollar, New Zealand dollar and Korean won. Moving forward, CLS is actively seeking to add further currencies in response to increased demand as a result of intra-Asian trade flows, and has held discussions with central banks in the region, including the People’s Bank of China.
The new Hong Kong office is led by Rachael Hoey, Head of CLS, Asia, who commented: “Establishing an office in Hong Kong affirms the growing importance of the Asia region and its currency markets. CLS is making progress in the region, which is reflected by the increasing level of support of our market engagement, particularly with respect to the renminbi. I look forward to leading CLS’ efforts in Asia, broadening our engagement and delivering growth.”
David Puth, Chief Executive Officer of CLS commented: “CLS has proven itself as a model that demonstrates how people, technology and international cooperation contributes towards improving stability, liquidity and efficiency in the financial markets. The timing of this development is a welcome addition to our efforts supporting our Asia-based Settlement Members and extending coverage in the region. I firmly believe this is an exciting phase in CLS’ history that demonstrates our commitment to mitigating FX settlement risk globally.”