HSBC takes central bank on CLS

The bank, which has requested anonymity, went live on the continuous-linked settlement service for foreign exchange in February.

Clyde Muir, HSBC’s CLS product manager in London, said the move might encourage more central banks to use the settlement service, which reduces settlement risk on FX trades via a payment-versus-payment system.

HSBC said it has also taken the first fourth-party live on the service. Norddeutsche Landesbank in London started using CLS via its parent firm Norddeutsche L