CLS Group Holdings AG (CLS Group) says that Korea Exchange Bank and Kookmin Bank have become shareholders of CLS Group, bringing the total number of banking and financial institutions as shareholders to 69.
This follows the recent announcement that the Board of Directors of CLS Bank International (“CLS Bank”) has endorsed, in principle, the inclusion of the Korean Won as a CLS Bank eligible currency once all the requirements in CLS Bank’s rules have been satisfied and the necessary regulatory approvals have been obtained.
The two banks in due course will apply to become Members of CLS Bank, the provider of Continuous Linked Settlement (CLS), a global banking settlement system for the foreign exchange market. CLS Bank links eleven of the world’s central banks and many of the world’s leading financial institutions. A total of 54 banks are now settling live instructions for foreign exchange trades through CLS Bank, with over 90 Settlement Member customers (“third parties”) also live. CLS Bank is now settling on average over 100,000 payment instructions derived from foreign exchange deals submitted each day by its Settlement Members, with a gross value of approximately $US 1 trillion.
“I am pleased to welcome the latest additions to our growing shareholder group,” says Joseph De Feo, CEO of CLS Group and President and CEO of CLS Bank International. “As we add more shareholders and currencies we are achieving our objective of increasing the value of the CLS service for our shareholders and the financial services market globally. We now look forward to delivering our risk, liquidity and efficiency benefits to a wider section of the market.”
Mr. Hans-Bernhard Merforth, Senior Managing Director, Head of International Business Unit of Korea Exchange Bank, added: “KEB has acted successfully as the main interbank foreign exchange clearer since its inception. Once a Member of CLS Bank, KEB as a flagship foreign and trade finance bank will be able to provide a top-rated settlement service to customers under the CLS system, thereby significantly reducing settlement risk.”
Mr Sung-Hyun Chung, Executive Vice President of Kookmin Bank said: “Kookmin Bank is a leading commercial bank in Korea with an emphasis on international finance and clearing services. Once a Member of CLS Bank, Kookmin Bank will be able to provide settlement risk free FX settlement services to customers through the CLS system. The service will significantly reduce latent settlement risk thereby increasing both foreign currency transactions and international transactions in the Korean Won.”