CLS announced that Tokio Marine & Nichido Life Insurance and Nisshin Fire & Marine Insurance, two of Tokio Marine Holdings group companies, are indirectly accessing CLSSettlement as third-party participants. Since Tokio Marine & Nichido Fire Insurance joined CLSSettlement last year, the three group companies’ settlement processes are now aligned.
While several insurance companies in Japan have independently adopted CLSSettlement to mitigate settlement risk, this is the first time that a group of several insurance companies have worked together to adopt CLSSettlement across the whole group. This development highlights the continued growth in CLSSettlement adoption by the buy side in Japan and the growing commitment to improving the overall efficiency and safety of the FX market across Asia Pacific.
By aligning all group companies, the benefits of CLSSettlement can be maximized, resulting in enhanced management efficiency and cost reduction across the entire group.
In addition, by using CLSSettlement in conjunction with an FX trading platform and matching and confirmation service, participants benefit from streamlined data processing from execution through to settlement, which eliminates time-consuming manual processes. CLSSettlement also delivers streamlined and standardized processes for FX operations, minimizing tasks such as settlement value reconciliation, deposit balance adjustments and management of settlement failures.
The sell side in Japan can also benefit from the streamlined FX operations, funding efficiency and settlement risk mitigation that CLSSettlement provides. Enhancing operational efficiency could enable remote working with respect to CLSSettlement workflow and facilitate more flexible working arrangements through digitalized workflows and reduced manual intervention.
Akira Kato, head of Client Engagement Asia Pacific at CLS, said in a statement: “As FX global transactions and investments expand every year, we remain dedicated to making the FX community safer and more cost effective for our clients. We welcome the growing buy side participation in CLSSettlement.”