ABC's CLS steering committee included representatives from the bank's FX operations, audit, risk management and legal departments. The selection process included an evaluation of prospective CLS settlement members', systems architecture and functionality, service reputation, pricing and liquidity, as well as implementation support and business continuity capabilities.
CLS, an industry initiative to reduce settlement risk caused by time-differences in the settlement of FX trades, was launched on 9 September 2002. In addition to eliminating settlement risks, CLS is designed to streamline payment processing and give members more efficient use of capital and liquidity in their trading and credit facilities.
Alex Richardson, Senior Vice President and Head of ABC's Operations, said: "Following a two year development and testing phase and after careful consideration of several leading CLS settlement members proposals, HSBC was chosen for its CLS core competencies, existing currency clearing network and proven technology.
"HSBC's proven technological platform is compatible with ABC's CLS enhanced systems and provides an opportunity to use CLS both for reduction of settlement risk and as a new way to settle FX using straight through processing with the further opportunity to re-engineer related processes. We look forward to working with HSBC as this relationship is a development of our existing relationship and our positive experience with them."
Nigel Weir, Head of Institutional Banking, HSBC Bank Middle East said, "We are delighted that ABC, the first Middle East bank to enter the CLS arena, has chosen HSBC. This will broaden the overall relationship that has already developed significantly over recent years."
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Arab Banking Corporation (B.S.C.) selects HSBC as CLS settlement member
- Bahrain: Tuesday, August 26 - 2003 at 13:55
- PRESS RELEASE
Arab Banking Corporation (ABC), the leading regional foreign exchange (FX) bank, has selected HSBC as settlement bank for its FX Continuous Linked Settlement (CLS) trades. HSBC is the settlement member for ABC and is expecting to process over 20,000 eligible FX transactions annually. The first transaction was processed on 29 July, 2003.
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Notes and media contacts
For further information, contact:Dr. Sami Dannish, First Vice President, Arab Banking Corporation on Tel 973 543204 or Steve Martin, Regional Corporate Affairs Manager, HSBC on Tel 9714 3906630.
Notes:
1. Arab Banking Corporation (B.S.C) ("ABC"), established in 1980, is headquartered in Manama, Bahrain. ABC's strategy of diversified growth led to the development of its widespread network (the "ABC Group") of branches, representative offices, subsidiaries and affiliates in over thirty countries around the world, including most principal international financial centres.
The ABC Group provides a wide range of banking services, with branches focusing principally on wholesale commercial and corporate banking and trade finance services. ABC's subsidiaries concentrate largely on exploiting opportunities in domestic retail and merchant banking sectors, while its affiliates offer specialised financial services.
2. HSBC Bank Middle East
HSBC is the largest and most widely represented international bank in the Middle East. HSBC Bank Middle East has 29 branches throughout the United Arab Emirates, Oman, Bahrain, Qatar, Jordan, Lebanon, and the Palestinian Autonomous Area, including an offshore banking unit in Bahrain. This extensive regional coverage is strengthened by another member of the HSBC Group HSBC Bank Egypt SAE, and by its associated companies, The Saudi British Bank and British Arab Commercial Bank Limited. In addition to its Middle Eastern network, the Bank has a representative office in Tehran, Iran.
3. HSBC Holdings plc
With over 9,500 offices in 79 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa and assets of US$759 billion at 31 December 2002, HSBC is one of the world's largest banking and financial services organisations. Global Payments and Cash Management is part of HSBC Corporate, Investment Banking and Markets. It has regional teams based in Europe, the Asia-Pacific, the Americas, and the Middle East providing cash management solutions to the Group's corporate and institutional clients on a local, regional or global basis.
CLS Settlement Services are provided by HSBC Bank plc for the HSBC Group.
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