• and looking ahead, if foreign exchange transactions become centrally cleared, what role can and should cls play to facilitate the safe settlement of those transactions? • i ’ d note, cls has plenty of strategic choices there, always a good sign. second, cls was created by private sector leadership and financial institutional commitment and industry collaboration is a key part of a successful future. • cls cannot do its work alone. what makes cls successful are members who are proactive in identifying and working with cls on opportunities to further strengthen the cls ecosystem, particularly in a market that is rapidly changing. • that will require not just member support but also member investment. third, the birth of cls and its development exemplifies the productivity of public sectorprivate sector collaboration. we have different roles, but a common interest in the performance and resiliency of the foreign exchange market. as we play our respective roles, we can make each other more insightful and better performing. we have done that here in foreign exchange settlement – and speaking personally, i would like to see private sector and public sector tackle more opportunities across the financial markets. let me end by congratulating cls and all who are part of it on these first 10 very successful years, thank the wider group here for the collaboration you have developed within the industry, and thank you also for the partnerships you have forged with central banks, most especially, with the federal reserve bank of new york. we wish you another equally successful decade – and look forward to another decade of working successfully together. bis central bankers ’ speeches

trades to support high - volume, low - value transactions, one of the fastest growing segments of the fx market. and in light of volume growth, cls has also engaged its stakeholders to help them better understand their own capacity needs and to ensure that both its members and the cls settlement service are able to manage even further growth as the fx market continues to evolve. third, resilience in difficult times. following the collapse of lehman brothers in september 2008, while market sentiment deteriorated rapidly and money and capital markets were brought to a virtual standstill, the foreign exchange market continued to function effectively. many have attributed this to the role played by cls. and more recently, cls remained a reliable market infrastructure during and in the wake of superstorm sandy. as you know, the superstorm disrupted this celebration, and my colleague, sandy krieger ( no relation ), who was to deliver these remarks could not make it this evening, but sends her warm regards. in recognition of the crucial role that cls serves in the foreign exchange market, cls was designated as a systemically important financial market utility by the u. s. financial stability oversight council on july 18, 2012. in my words, we can ’ t imagine the foreign exchange market without cls. let me turn to the future and what it holds for cls and for us. as is true for all us, the path of the future is determined in part by the momentum of our history and in part by the unknowable that lies ahead. let me talk to the history. first, it seems clear that cls has much more runway ahead in furthering its core mission – the reduction of fx settlement risk – by expanding its settlement service to include additional currencies and settlement sessions, and to increase participation in the system. • today, cls settles 17 currencies. but there are many more currencies to go, some in regions that are just coming fully onstream in the global financial system. bis central bankers ’ speeches • today, “ same day ” foreign exchange activity is not settled in cls. can cls find solutions to help reduce settlement risk in this segment of the market? • today, cls has one discrete settlement session that occurs at a defined time during the day. is it feasible to imagine a world where cls is truly continuous in linking settlements on a payment - versus - payment basis at most, if not all times during the global business day?