Forint could join CLS currency settlement system

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THe Hungarian forint could be the first currency in the CEE to join the CLS settlement system in the next few weeks, the company told international news service Reuters on Thursday.

According to Reuters, the National Bank of Hungary is planning by November 16 to join the system, which “covers 17 currencies and almost all of global wholesale foreign exchange trading”. Citing “sources with knowledge on the project”, Reuters reported that the introduction could happen “in weeks”.

“CLS has moved into the implementation phase of onboarding the Hungarian forint,” the company said in a statement. “The go-live is targeted for fourth-quarter 2015, subject to the satisfaction of CLSʼs eligibility criteria and internal governance requirements and securing the necessary regulatory approvals.”

Specialist U.S. financial institution CLS provides settlement services to its members in the foreign exchange market (FX). “CLS is the largest multi-currency cash settlement system, eliminating settlement risk for over half of the worldʼs FX payment instructions,” the company says on its website. “CLS enhances financial stability by providing risk mitigation and operational services for the global FX market,” the website adds.

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