Stability, trust and resiliency through technology the key to the safe functioning of financial markets

Everyone knows that CLS Bank plays a critical role in helping to mitigate risk across the foreign exchange markets. But many don’t know the history behind this systemically important institution and the key work that it has done over the past decade and more to help maintain financial market stability. e-Forex has invited David Puth, the company’s CEO, to provide a brief profile of his organisation and highlight why CLS remains the blueprint for cross-border co-operation to mitigate risk.

Financial markets are experiencing a paradigm shift as governments, regulators and participants recalibrate the processes and structures underpinning global finance.The global financial economy has undergone severe shocks over recent years, from which it has not yet fully recovered. Stable economic growth and the preservation of market confidence must be the priority for central bankers and market participants around the world.  The challenge is to repair and remedy where needed, with dialogue between central banks, regulators and participants, but also to avoid creating fragmented markets or worse, unintentionally reintroducing risk.  As all entities look for ways to reduce risk across financial markets, the creation and experience of CLS Bank offers a unique example for how co-operation and investment can work between and across national borders and jurisdictions to mitigate financial risk. CLS is a bank-owned institution that was launched in 2002 to eliminate settlement risk, one of the...continued

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