Foreign exchange round-up: …but central bankers want more
Central bankers will welcome the extension of CLS’s services. A recent report from the Committee on Payment and Settlement Systems, Progress in reducing foreign exchange settlement risk, contains recommendations on how the industry can further reduce and control remaining exposures.
"The financial services industry has made significant progress in dealing with foreign exchange settlement risk. However, more can and should be done to tackle remaining exposures," says Timothy Geithner, president of the Federal Reserve Bank of New York and CPSS chairman. The survey shows that 55% of FX trades are now settled using CLS Bank. "This is an important accomplishment, but more needs to be done," he says.