Daiwa joins 65 other financial institutions in becoming a direct participant in CLS’s settlement and risk mitigation system.
The Japanese financial institution is one of the largest securities companies in Japan and has a significant global presence. It joins 65 other financial institutions in becoming a direct participant in CLS’s settlement and risk mitigation system – which settles approximately USD5 trillion a day on behalf of its clients.
The Japanese currency market is the largest international hub for currency trading in Asia. Recent data from the Tokyo FX Market Committee’s semi-annual FX turnover survey found that a daily average of USD407 billion was traded in April 2016 – an increase of 5% from October 2015.
Furthermore, one of the effects of Abenomics – a collection of policies designed to reinvigorate the Japanese economy – has been greater international diversification of Japan’s financial assets. As cross-border currency trade increases, the emphasis on reducing counterparty risk is becoming even more crucial.
As a CLS settlement member, Daiwa Securities Group and its clients across the globe will benefit from significant liquidity, operational and IT efficiencies to support their currency trading operations.