Mitigating FX settlement risk in Australia

Reduce risk, improve efficiency and increase liquidity

Superannuation funds are placing greater emphasis on diversification of investments to offshore assets as one of the ways they can achieve superior returns for their clients.

This trend toward asset globalization and higher foreign content in domestic portfolios has resulted in an increased need for FX transactions and hedging within superannuation funds and, therefore, a larger exposure to currency settlement risk. Alongside the pursuit of alpha, larger superannuation fund managers are also exploring ways to enhance operational efficiencies, reduce costs and demonstrate best execution.

Our leading FX settlement service, CLSSettlement, makes settlement efficient, safer and more cost-effective. We protect market participants from the most significant risk associated with currency trading - settlement risk.

We do this by simultaneously settling payments relating to FX trades using our unique payment-versus-payment system.We also maximize the advantages of straight-through processing to deliver operational efficiencies and minimize associated costs.

Read CLS’s view about how global pension industry trends are highlighting gaps in settlement risk mitigation by
downloading our latest insight >> Pension industry trends highlight gaps in settlement risk mitigation

Margaret Law
- Head of Client Management, Asia Pacific

Margaret joined CLS in 2018 and is responsible for client management and business development across the Asia Pacific region.

Prior to joining, Margaret held leadership roles across a range of asset classes and for a number of different banks, including Northern Trust, Bank of America Merrill Lynch, HSBC and Citibank.

Ed Dovey
- Client Management, Australia and New Zealand

Ed is responsible for sales and relationship management for clients based in the Asia Pacific region with a particular focus on Australia and New Zealand. He joined CLS in 2017 to cover the Europe, Middle East and Africa region and transferred to Hong Kong in June 2018. He was previously at HSBC Global Banking and Markets in the client relationship management department, specializing in large asset managers.

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CLSSettlement investment managers

CLSSettlement overview


“We are seeing an increase in participation in CLSSettlement from pension funds across the region as they become increasingly aware of the risks associated with currency settlement outside of CLS.”

Margaret Law,
Head of Client Management, APAC