The Asian connection
Several Asian banks are already using continuous-linked settlement to reduce foreign exchange risk, but with more Asian currencies set to be added over the next year, the number of users looks set to rise further. Clive Davidson reports
When CLS Bank International launched in September 2002 it included two Asiancurrencies – Australian dollar and yen – among the seven for whichit offered foreign exchange settlement processing. Created to reduce settlementrisk in the nearly $2 trillion a day currency market, CLS Bank has since incorporated the Singaporedollar in September this year and announced its intention to bring the Hong Kongand New Zealand dollars and Korean won onto the system in 2004. Since most forextrading in the
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