Technology and regulatory guidance and principles will shape the foreign exchange (FX) market’s structure in 2018, according to David Puth, CEO of CLS, in an exclusive interview with FX Week.
2017 saw the publication of the FX Global Code, and a number of leading financial services and technology institutions confirmed their commitment to adopting and instilling its principles. This trend, Puth says, will continue in 2018 as the Global Foreign Exchange Committee publishes its final guidance on Principal 17 covering “last look”.
2018 will also be a year in which CLS expands its role offering new solutions to improve efficiency and reduce risk in the FX market.
“We are becoming more than a settlement utility. While delivering the risk mitigation that comes with safe settlement is our primary mission, we continue to focus on delivering products that solve client problems,” says Puth.
These include a same-day settlement service for five of the world’s most liquid currencies, and its much-anticipated distributed ledger technology (DLT) enabled netting service, CLSNet.
These technologies will likely have a significant impact on FX market structure, helping it to become more efficient and speed up the movement of currency around the world.
For more on what 2018 holds for FX, including David’s thoughts on the dollar and bitcoin, read the full interview here.