CEO, Marc Bayle de Jessé, speaks to Sibos TV about the public policy focus on mitigating FX settlement risk through the greater adoption of PvP settlement.

Both the updated best practice code for the FX industry – the FX Global Code – and the Financial Stability Board are advocating greater PvP settlement to enhance cross-border payments and further mitigate systemic risk.

In response CLS has been actively engaged with the FX industry to develop alternative PvP mechanisms. These efforts have received strong support. However, progress will only be made by overcoming regulatory and geopolitical challenges, which currently present the biggest obstacles to expanding PvP coverage. So what can be done in the more immediate term?