Chong Hing Bank to Access CLS Via UBS
Posted by Colin Lambert. Last updated: August 25, 2022
CLS has unveiled Chong Hing Bank as the second Chinese bank to access CLS Settlement as a third-party participant via UBS.
The addition of Hong Kong-based Chong Hing demonstrates, CLS says, the growing appeal of CLS Settlement in the Asia Pacific region. Since 2018, the overall number of APAC third parties participating in the service has increased by 31%, it adds, while respective average daily values settled increased by 28%.
Recently, the Hong Kong Monetary Authority (HKMA) updated its Supervisory Policy Manual, further aligning its requirements with the supervisory guidance for managing risk standards set by the Basel Committee on Banking Supervision. CLS says it supports market participants’ adherence to global and local best practices as well as mitigating risks associated with FX settlement through CLS Settlement.
“The move represents the increasing FX trading volume of Chong Hing Bank, with the continuing support from Yuexiu Group, as well as the vibrant business opportunities for the Greater Bay Area,” says Chan Yun Ling, head of treasury and markets, Chong Hing Bank.
Sandra Laielli van Scherpenzeel, global head of cash banks at UBS, adds,“UBS is committed as a key CLS third-party provider to support further growth in the Asia Pacific region. The addition of Chong Hing Bank further reinforces our commitment to offer CLS third-party services to our clients. Through the increased awareness of the FX Global Code, broader participation across the service will help to build a more robust global FX market by mitigating FX settlement risk.”
Meanwhile, Lisa Danino-Lewis, chief growth officer, CLS, says, “We are pleased that Chong Hing Bank has chosen to use CLS Settlement. With the growth of FX trading in many Asian currencies, market participants are becoming increasingly aware of settlement-related risk and are using CLS Settlement to mitigate this risk, while at the same time benefiting from enhanced operational efficiencies. Participating in CLS Settlement also supports Chong Hing Bank’s adherence to global and local best practices, such as the FX Global Code.”