State Street to provide access to CLS FX settlement platform
27 February 2019 Tokyo
Image: Shutterstock
State Street has started providing access to CLS’s risk-mitigating foreign exchange (FX) settlement platform, CLSSettlement, for a Japanese-domiciled pension fund as a pilot fund.
This is the first pension fund to migrate its FX settlement to CLSSettlement in Japan.
According to State Street, the decision to adopt CLS is the result of a coordinated effort across the industry, led by the Financial Services Agency of Japan along with Bank of Japan, to provide access to CLSSettlement to the Japanese buy-side community.
This announcement comes after Japanese-domiciled funds gained access to CLS as third-party participants in 2018.
Commenting on the development, Margaret Law, head of client management for the Asia Pacific at CLS, said: “We look forward to working with State Street to facilitate settlement and
operational risk mitigation associated with FX trading for pension funds in Japan.”
She added: “We are seeing an increase in participation in CLSSettlement from pension funds and the buy-side more generally, globally and across the region, as the buy-side becomes increasingly aware of the risks associated with currency settlement outside of CLS.”
“This latest development reflects our growing presence in Japan across the buy-side. It is also a testament to our strategy of reducing risk and creating efficiencies for a diverse range of third-party clients while bolstering the stability of the FX market.”
Mark Hamilton, president and representative director of State Street, commented: “We look forward to bringing our extensive global experience to support the Japanese buy-side community as it accesses settlement risk mitigation through CLSSettlement.”
He added: “This is an important development for the market that we believe will lead to
increased interest, and adoption, from trust funds domiciled here.”
This is the first pension fund to migrate its FX settlement to CLSSettlement in Japan.
According to State Street, the decision to adopt CLS is the result of a coordinated effort across the industry, led by the Financial Services Agency of Japan along with Bank of Japan, to provide access to CLSSettlement to the Japanese buy-side community.
This announcement comes after Japanese-domiciled funds gained access to CLS as third-party participants in 2018.
Commenting on the development, Margaret Law, head of client management for the Asia Pacific at CLS, said: “We look forward to working with State Street to facilitate settlement and
operational risk mitigation associated with FX trading for pension funds in Japan.”
She added: “We are seeing an increase in participation in CLSSettlement from pension funds and the buy-side more generally, globally and across the region, as the buy-side becomes increasingly aware of the risks associated with currency settlement outside of CLS.”
“This latest development reflects our growing presence in Japan across the buy-side. It is also a testament to our strategy of reducing risk and creating efficiencies for a diverse range of third-party clients while bolstering the stability of the FX market.”
Mark Hamilton, president and representative director of State Street, commented: “We look forward to bringing our extensive global experience to support the Japanese buy-side community as it accesses settlement risk mitigation through CLSSettlement.”
He added: “This is an important development for the market that we believe will lead to
increased interest, and adoption, from trust funds domiciled here.”
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