Another won done for CLS
Shinhan Bank has become the third South Korean shareholder of CLS Group.
The decision brings the total number of shareholders to 70. The other two South Korean shareholders are Kookmin Bank and Korea Exchange Bank, who took their stakes in October 2003.
Although no financial terms were disclosed, it is believed that it generally costs around $5 million to become a CLS shareholder. Shinhan will later apply to become a CLS settlement member. Rob Close, chief executive officer of CLS Group, says in a press release: “I am pleased to welcome Shinhan Bank to our shareholder group. Korean participation and volume is growing within CLS, reflecting the increasing stature of the Korean market. The role of CLS is to support the growth of the foreign exchange market, providing a market leading settlement service that eliminates settlement risk and increases operational efficiency.”
Jin Chan-Hee, executive vice-president and head of treasury and global banking group of Shinhan Bank, says: “We are delighted to be joining CLS Group as a shareholder as it gives us stronger global competitiveness in foreign exchange. By participating in the CLS system, Shinhan Bank, as a main FX trader in the Korean market and as a leading bank in the Korean commercial banking industry, has taken a great step forward to better manage settlement risk and improve fund-use efficiency, thereby further enhancing our risk and liquidity management.”