CLS announced today that Chong Hing Bank is the second Chinese bank to access CLSSettlement as a third-party participant via UBS, a CLS settlement member.

The addition of Hong Kong-based Chong Hing Bank demonstrates the growing appeal of CLSSettlement in the Asia Pacific (APAC) region. Since 2018, the overall number of APAC third parties participating in CLSSettlement increased by 31% while respective average daily values settled in the service 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 (BCBS). CLS supports market participants’ adherence to global and local best practices as well as mitigating risks associated with FX settlement through CLSSettlement – its unique payment-versus-payment settlement system which simultaneously settles the payments on both sides of an FX trade.

Chan Yun Ling, Head of Treasury and Markets, Chong Hing Bank said,

“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.”

Edward Chiu, Chief Operating Officer and Alternate Chief Executive, Chong Hing Bank added,

“Using CLSSettlement will contribute to mitigating settlement risk and enhancing operational efficiency of our FX transactions. We are confident that joining CLS’s global platform will play a vital role in our business growth.”

Lisa Danino-Lewis, Chief Growth Officer, CLS commented,

“We are pleased that Chong Hing Bank has chosen to use CLSSettlement. With the growth of FX trading in many Asian currencies, market participants are becoming increasingly aware of settlement-related risk and are using CLSSettlement to mitigate this risk, while at the same time benefiting from enhanced operational efficiencies. Participating in CLSSettlement also supports Chong Hing Bank’s adherence to global and local best practices, such as the FX Global Code.”