China CITIC Bank International Limited (CNCBI) has become the first Chinese bank to access CLS Settlement as a third-party client, CLS says, adding that this addition adds to a broader growth in third-party participation throughout the region, which has seena 21% increase in the overall number of third parties (regional/third-party banks, funds, corporates and non-bank financial institutions), as well as an increase of 36% in average daily gross volumes settled by third-party participants in the last three years.

“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,” says Bai Lijun, executive director, alternate chief executive officer and treasurer, CNCBI.

Margaret Law, head of client management, Asia Pacific, CLS adds, “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.”

Colin Lambert

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