Bank Protocols
CLS Bank publishes and administers information on Bank Protocols.
The purpose of these Protocols is to offer market participants an efficient way to address issues relating to standards and/or best practices surrounding post-trade processes where related payment instructions are submitted to the CLS system for settlement services in CLS Bank. Such standards and/or best practices have been developed and agreed generally by the industry.
Participation in the Protocols is open to all market participants (Members and non-Members of CLS Bank). It should be noted that there is no adherence fee required for market participants wishing to participate in these Protocols.
FX Protocol
Background
The purpose of the FX Protocol is to offer market participants an efficient way to address legal and operational issues that arise in connection with FX transactions whose related FX Instructions are submitted to the CLS system for settlement services in CLS Bank. Specifically:
- Confirmation of Economic Terms (Legal) – to enable parties with FX instructions related to their underlying FX transaction submitted to the CLS system for settlement in CLS Bank to treat FX instructions that have been matched in the CLS System as a confirmation of each economic term of the underlying FX transaction so matched.
- Adoption of Stated Industry Best Practice (Operational) – to enable parties to notify other parties of their respective current positions, as an operational matter, on the stated industry best practice of not requiring the receipt of a separate confirmation of an FX transaction if the related FX instructions have been matched in the CLS system (the “Best Practice”). Unlike the confirmation of economic terms described above, this is an optional, not mandatory, provision in the FX Protocol.
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 | The CLS Bank Protocol, FAQs and, if applicable, the relevant Letters should be reviewed carefully by your institution before acting on any information summarized in this file. (In particular, it should be well understood that, as indicated in the FAQs, an institution's adherence to the FX Protocol alone does not provide any indication of whether it has adopted the Best Practice of no longer requiring the receipt of separate confirmations.) | May 25, 2011
|  | This will contain the conformed copies and will be updated regularly. | April 03, 2013
| | This contains the conformed copies and will be updated regularly. | April 03, 2013
| | | Jul 14, 2008
| | | Jul 14, 2008
| | | Jul 14, 2008
|  | For Single Adherence Party: Non-Member | Jul 14, 2008
| | For Multiple Adhering Parties: Affiliates | Jul 14, 2008
| | For Investment or Asset Manager | Jul 14, 2008
| | For Member or Non-Member and Affiliates | Jul 14, 2008
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NDF Protocol
Background
The purpose of the NDF Protocol is to offer market participants an efficient way to address legal and operational issues that arise in connection with NDF transactions where NDF opening instructions are submitted to the CLS system for settlement services in CLS Bank. Specifically:
- Transaction Confirmation of Economic Terms under NDF Multilateral Master Confirmation Agreement (Legal) - to enable parties with NDF Opening Instructions related to their underlying NDF Transaction submitted to the CLS System for Settlement in CLS Bank (A) to agree to be bound by the Multilateral Master Confirmation Agreement for Non-Deliverable Forward FX Transactions ("Multilateral NDF Master Confirmation") published by the Foreign Exchange Committee (FXC), EMTA, Inc (EMTA) and the FX Joint Standing Committee (FX JSC) as co-sponsors on October 31, 2007 for such NDF Transaction; and (B) to treat the NDF Opening Instructions that have been matched in the CLS System as a transaction confirmation for the economic terms of the NDF Transaction under the Multilateral NDF Master Confirmation; and
- Multilateral Adoption of NDF Best Practice (Operational) - to enable parties to notify other parties of their respective current positions, as an operational matter, on the best practice for NDF Transactions of not requiring the receipt of a separate confirmation of an NDF Transaction if the related NDF Opening Instructions have been matched in the CLS System and the NDF Transaction involves a currency pair for which (i) EMTA has recommended template terms or (ii) the parties have bilaterally agreed to template terms for general application to NDF Transactions between them (the "NDF Best Practice"). Unlike the transaction confirmation of economic terms under the Multilateral NDF Master Confirmation described above, this is an optional, not mandatory, provision in the NDF Protocol.
| Type | | |
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| The CLS Bank Protocol, FAQs and, if applicable, the relevant Letters should be reviewed carefully by your institution before acting on any information summarized in this file. (In particular, it should be well understood that, as indicated in the FAQs, an institution's adherence to the NDF Protocol alone does not provide any indication of whether it has adopted the Best Practice of no longer requiring the receipt of separate confirmations.) | Apr 12, 2010
| | This contains the confirmed copies and will be updated regularly. | Apr 12, 2010
| | | Jul 14, 2008
| | | Jul 14, 2008
| | | Jul 14, 2008
| | For Single Adherence Party: Non-Member | Jul 14, 2008
| | For Multiple Adhering Parties: Affiliates | Jul 14, 2008
| | For Investment or Asset Manager | Jul 14, 2008
| | For Member or Non-Member and Affiliates | Jul 14, 2008
| | For Investment or Asset Manager | Jul 14, 2008
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