In other news, HKEX has a new carbon marketplace, the OCC will have a fintech office & Coremont has a new CTO.
UBS & FAB Will Use CLSNet for 120 Currencies
UBS and First Abu Dhabi Bank (FAB) report that they have gone live on the CLSNet bilateral payment netting calculation service from FX settlement provider CLS.
The CLSNet platform standardizes “post-trade processes across the global currency spectrum,” and is intended to cut risk, enhance efficiency, and improve liquidity for a network of FX market participants, officials say.
UBS and FAB will join “a centralized platform with matching and legal confirmation of over 120 currencies for FX products, including same-day trades and NDFs,” officials say.
The UBS and FAB announcement follows recent news that Deutsche Bank, Mashreq, and Standard Chartered are using the platform, officials say
In addition to operations support, CLSNet also helps FX market participants comply with the FX Global Code, a set of principles of good practice for the FX market, officials say. “In particular, using the service supports adherence to Principles 35 and 50,1 as all trade instructions sent to CLSNet are automatically validated and matched up to the pre-determined cut-off times between counterparties for each currency,” according to CLS.
“CLSNet will enable us to address our wider post-trade processing needs and automate our bilateral netting activity with fellow participants. Further, as a centralized infrastructure, it not only delivers risk mitigation for participants but also facilitates front office benefits such as liquidity optimization and reduced funding requirements,” says Steve Forrest, global head of FX operations at UBS, in a prepared statement.
“Participating in CLSNet also supports FAB’s adherence to the best practice settlement risk principles of the FX Global Code,” says Anan Samaneh, senior vice president (SVP) and head of FXMM & control operations for FAB.
HKEX Launches International Carbon Marketplace
Hong Kong Exchanges and Clearing Limited (HKEX) reports that it is launching Core Climate, a “new international carbon marketplace that seeks to connect capital with climate-related products and opportunities in Hong Kong, Mainland China, Asia and beyond.”
Core Climate “will facilitate effective and transparent trading of carbon credits and instruments to support the global transition to Net Zero. Core Climate participants will be able to source, hold, trade, settle and retire voluntary carbon credits through the Core Climate platform,” according to HKEX. “Core Climate will provide effective and transparent trading of voluntary carbon credits and instruments, across Asia and beyond.”
Core Climate’s carbon credits will “come from internationally-certified carbon projects from around the world, including carbon avoidance, reduction and removal projects. All projects listed on Core Climate are verified against international standards, such as the Verified Carbon Standard by Verra.” — L.Ch
OCC Forming Office of Financial Technology
The Office of the Comptroller of the Currency (OCC) reports that it will establish an Office of Financial Technology early next year. The office is meant to “bolster the agency’s expertise and ability to adapt to a rapidly changing banking landscape,” according to an OCC statement.
“The Office of Financial Technology will build on and incorporate the Office of Innovation, which the OCC established in 2016 to coordinate agency efforts to support responsible financial innovation,” the statement adds.
“Financial technology is changing rapidly and bank-fintech partnerships are likely to continue growing in number and complexity. To ensure that the federal banking system is safe, sound, and fair today and well into the future, we need to have a deep understanding of financial technology and the financial technology landscape,” Acting Comptroller of the Currency Michael J. Hsu says in the statement. “The establishment of this office will enable us to be more agile and to promote responsible innovation, consistent with our mission.” — L.Ch
Coremont Taps JPMorgan for New CTO
Coremont LLP, an FCA-regulated financial services firm that provides “front-to-back portfolio management support for hedge funds and institutional asset managers,” has appointed Balaji Krishnamurthy chief technology officer (CTO), officials say. He will be based in the United States.
Krishnamurthy, who most recently worked at JPMorgan, has more than 25 years of experience, “servicing prime broker, equities, custody and wealth management clients across leading financial firms,” according to Coremont. At JPMorgan Chase & Co., he served as managing director overseeing middle office and post-trade technology based in New York.
“Prior to joining JPMorgan in 2014, Balaji was director of post-trade technology at Barclays, and previous to that he held positions at Nomura, Lehman Brothers, and Goldman Sachs,” according to a Coremont statement.
Coremont LLP was “spun out from Brevan Howard in 2018, with offices in New York, Connecticut, London, and Hong Kong,” the statement adds. — L.Ch
Need a Reprint?