Asset formula

Three banks use CLS’s net payment calculation service

Foreign exchange settlement service provider CLS integrates Deutsche Bank, Mashreq and Standard Chartered with CLSNet, an automated bilateral payment clearing calculation service for approximately 120 currencies.

CLSNet standardizes and centralizes post-trade processes across the entire global currency spectrum, reducing risk, improving efficiency and improving liquidity for a growing network of foreign exchange market participants.

The service also helps market players to adhere to the Global exchange code, a set of best practice principles for the industry, says CLS. In particular, it supports adherence to Principles 35 and 50, as all transaction instructions sent to CLSNet are validated and matched against predetermined cut-off times between counterparties for each currency. This ensures that only matched trade instructions are included in the automated net calculation and that there is a single common record of net payment obligations.

Lisa Danino-Lewis, Chief Growth Officer of CLS, said, “The addition of Deutsche Bank, Mashreq and Standard Chartered demonstrates the appeal of CLSNet to all market participants exploring ways to mitigate settlement risk, reduce operational costs and optimize post-trade liquidity. FX trading process. 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.


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