Case Studies & Articles 

This article by Will Spinney appeared in the May 2009 edition of The Treasurer magazine:
The Great FX Fix
Association of Corporate Treasurers (ACT)

“Our experience is proving more cost effective in terms of back office resources in addition to achieving the anticipated risk reductions. We intend to build on the greater level of STP which we have seen under CLS, particularly in the area of settlement instructions within confirmation matching.”
Anglo Irish Bank

“Guaranteed settlement was a major factor in our decision to participate in CLS. We have already seen benefits, with improved management and significantly lower error rates.”
Banca del Ceresio

“We are already seeing benefits with regards to the reduced exposure to those counterparts clearing via CLS. Its introduction has opened doors to those participants who we might not normally have traded with but now can due to the elimination of settlement risk.”
Bank Julius Baer & Co Ltd

“CLS reduces settlement risk, allowing us to increase volume transactions with our trading partners and customers.”
Biverbanca

“Economies of scale resulted in a positive decision to join CLS as a third party participant at an early stage. All our important frequent trading partners welcomed our decision to join CLS which enhances relationships. CLS is an essential element for smooth and safe FX operations.”
Hauck & Aufhäuser

“We believe that CLS participation may lead to increasing instances of less favourable FX pricing or even on the availability of price quotations at all to non-CLS participant counterparties.”
Joh. Berenberg, Gossler & Co.

“The main reason for joining CLS was our goal to reduce settlement and operational risks. Operational and business expectations have been met as internal credit limits are used less and cash transfers have been reduced due to netted payments. CLS marks the future in FX settlement and any bank which wants to stay competitive needs to join in.”
Landesbank Rheinland-Pfalz

“Banks that are afraid of change, stagnate, lose much of their vigour and are not able to bring the best quality of service to their customers. We strive to differentiate ourselves especially if the changes bring great advantages like CLS in terms of settlement risk elimination.”
Pictet & Cie

“Following a successful start, we find CLS to be an efficient and secure way to settle FX. Sydbank has been able to conclude CLS settlement agreements very quickly with a high number of trading counterparties. CLS settlement has led to simplification of liquidity management and cash flow.”
Sydbank