Thailand’s CIMB Thai Bank has signed up JP Morgan for its foreign exchange settlement services in an attempt to increase trade capacity.
CIMB will look to use JP Morgan’s continuous linked settlement third party product to reduce its forex settlement risk.
Trade at the Thai bank will benefit through a scalable product that helps simplify the trade matching and reconciliation process.
This is JP Morgan’s first continuous linked settlement client in Thailand.
However, over the last year the US bank has been chosen to provide clearing facilities for CIMB’s Malaysia, Indonesia and Singapore businesses.
David Wee, head of group information and operations at CIMB Thai Bank, says: “With JP Morgan’s CLS service, we have been able to significantly reduce our settlement risk and enhance the services we offer to our clients, while at the same time reducing our cost by minimising the number of failed settlements and other post-settlement complications.
“Over the last year, we have been impressed with JP Morgan’s commitment to us as a client, so it gives us great pleasure to extend this relationship.”
Abdul Raof Latiff, JP Morgan’s head of treasury services for the Asean region, adds: “This broader relationship with CIMB is a testament to our success in delivering to our clients’ solutions which build their business, reduce their cost and mitigate their risk.
“As an exciting and rapidly emerging market, Thailand clearly represents an important element of JP Morgan’s international growth strategy across the region.”