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Asset Services Clearing and Settlement News

Deutsche Bank, Mashreq and Standard Chartered will integrate CLSNet, CLS’s standardized and automated bilateral payment clearing calculation service for approximately 120 currencies.

They will join the growing CLSNet community of global and regional banks to further standardize and centralize post-trade processes with the goal of reducing risk, improving efficiency and improving liquidity for participants in the foreign exchange market (FX ).

All transaction instructions sent to CLSNet will be validated and matched up to the pre-determined cut-off times between counterparties for each currency.

This ensures that only corresponding trade instructions are included in the automated net calculation and that there is a single common record of net payment obligations, explains CLS.

By automating the settlement process through a centralized platform, users benefit from greater operational efficiency and increased risk mitigation for currencies that are not currently eligible for CLSSettlement, adds CLS.

Commenting on the mandates, Lisa Danino-Lewis, Director of Growth at CLS, said: “The addition of Deutsche Bank, Mashreq and Standard Chartered demonstrates the appeal of CLSNet to all market participants exploring ways to mitigate the settlement risk, reduce operational costs and optimize liquidity for their post-trade FX trading processes.

“Given the industry-wide focus on mitigating settlement risk, CLS is working with market participants to evolve CLSNet and facilitate its adoption by a wide range of participants.”

Paul Scott, Managing Director of Financial Markets Operations at Standard Chartered, commented: “We are delighted to be part of the growing network that explores with CLS the mitigation of risk through automated payment clearing calculations, while offering an improved settlement offering to our customers and benefiting from significant operational efficiencies.

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