CLS, a market infrastructure group delivering settlement, processing and data solutions, announced today that Bangkok Bank Hong Kong Branch (Bangkok Bank) is the first Thai bank to access CLSSettlement as a third-party participant.
The addition of Bangkok Bank, a leading bank in Thailand and a major regional bank in Southeast Asia, strengthens the growing community of banks in the Asia Pacific region that have adopted CLSSettlement. By participating in CLSSettlement, Bangkok Bank can access the highest standards of FX settlement risk mitigation while also benefiting from improved funding and operational efficiencies through CLS’s unique PvP system.
Akira Kato, Head of Client Engagement, Asia Pacific, CLS, commented, “We are pleased to welcome Bangkok Bank as the first Thai bank to access CLSSettlement. As the FX market continues to evolve, it is critical that regional banks have access to robust and reliable solutions like CLSSettlement to mitigate FX settlement risk.
“In Asia, a key aim for CLS is to broaden participation in CLSSettlement and expand adoption of CLS’s other solutions that make the FX market safer, smoother and more cost effective for market participants.”
Demand for CLSSettlement has risen steadily and outpaced growth in the FX market in the past few years, with average daily settled values now over USD6 trillion.
Adrian Fong, Treasury Head of Bangkok Bank Hong Kong Branch, said, “It marks an important milestone for Bangkok Bank to have access to CLSSettlement. It will enhance our liquidity pool, reduce the settlement risk associated with FX settlement, and help the bank to grow its FX business further.”
Sandra Laielli van Scherpenzeel, Global Head of Cash Banks, UBS, commented, “CLS allows our clients to leverage the benefits of a multilateral netting scheme to reduce settlement risk and liquidity needs. It is with great pleasure that we see Bangkok Bank go live in CLSSettlement as a third party. It highlights the importance of CLS and its benefits in the APAC region and across markets.”
Lilian Chan, APAC Head of Cash Banks, UBS, added, “By joining the CLS community, Bangkok Bank Hong Kong branch has taken a significant step forward in the growth and expansion of its FX business, in full alignment with the local regulatory requirements. It is a testament to our commitment to supporting client implementation, which took less than two months end-to-end. We look forward to partnering further with Bangkok Bank regionally (in other branches and its headquarters) through our unique CLSSettlement fourth-party solution.”
It is critical that all market participants strive to adopt global best practices that mitigate risks and establish stronger controls. Industry initiatives such as the FX Global Code have motivated FX market participants, including those in Asia and across the globe, to adopt a best practice approach to settlement and post-trade processing.