Hungary's forint will be the first central and eastern European currency to be added to the CLS settlement system within the next few weeks, the company told Reuters on Thursday. CLS is a specialist US financial institution that provides settlement services to the foreign exchange market, a fundamental piece of infrastructure which reduces banks' costs and exposure to the risk of another party defaulting before transferring funds agreed under trades.
Hungary's central bank had set a target of November 16 for joining the system, which covers 17 currencies and almost all of global wholesale foreign exchange trading. Sources with knowledge of the project said the introduction would be "within weeks".
"CLS has moved into the implementation phase of onboarding the Hungarian forint," the company said in a statement.
"The go-live is targeted for fourth-quarter 2015, subject to the satisfaction of CLS's eligibility criteria and internal governance requirements and securing the necessary regulatory approvals."
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