CLS Endorses PvP Settlement Initiative in Japanese FX Market

by Jeff Patterson
  • The widespread usage of PvP settlement can be instrumental in reducing settlement risk in Japan.
CLS Endorses PvP Settlement Initiative in Japanese FX Market
Bloomberg
Join our Telegram channel

CLS Group, a provider of settlement services to its members in the foreign exchange (FX) market, has endorsed a recent initiative by Japan’s Financial Services Agency (FSA), helping promote payment-versus-payment (PvP) settlements, per a CLS statement.

Don't miss your last chance to sign up for the FM London Summit. Register here!

The widespread usage of PvP settlement can be instrumental in reducing settlement risk, helping shore up vulnerabilities in operational Risk Management – additionally, this can also help stimulate growth in Japan’s currency market. This movement is also commensurate with a recent commitment by Japan as a whole to help strengthen its domestic settlement climate.

This initiative was also necessitated by a heightened focus on Regulation , growing cross-border investment and reducing securities trade settlement cycles globally. In addition, the adoption of a PvP settlement system is also beneficial for commercial banks, trustees, and other securities entities throughout Japan. For its part, CLS is in a strategic position as a provider of risk mitigation and services for the global FX market, which lends weight to the FSA-supported initiative.

Japan is presently one of the world's largest centers for currency trading and a crucial hub for the Asian FX community. Participation in CLS is important as it would ultimately help embolden risk management and operational efficiencies for groups not already utilizing PvP systems.

CLS Group, a provider of settlement services to its members in the foreign exchange (FX) market, has endorsed a recent initiative by Japan’s Financial Services Agency (FSA), helping promote payment-versus-payment (PvP) settlements, per a CLS statement.

Don't miss your last chance to sign up for the FM London Summit. Register here!

The widespread usage of PvP settlement can be instrumental in reducing settlement risk, helping shore up vulnerabilities in operational Risk Management – additionally, this can also help stimulate growth in Japan’s currency market. This movement is also commensurate with a recent commitment by Japan as a whole to help strengthen its domestic settlement climate.

This initiative was also necessitated by a heightened focus on Regulation , growing cross-border investment and reducing securities trade settlement cycles globally. In addition, the adoption of a PvP settlement system is also beneficial for commercial banks, trustees, and other securities entities throughout Japan. For its part, CLS is in a strategic position as a provider of risk mitigation and services for the global FX market, which lends weight to the FSA-supported initiative.

Japan is presently one of the world's largest centers for currency trading and a crucial hub for the Asian FX community. Participation in CLS is important as it would ultimately help embolden risk management and operational efficiencies for groups not already utilizing PvP systems.

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}