The CLS community comprises central banks, Shareholders, Settlement Members, their third party customers, nostros, liquidity providers and technology vendors.
For each eligible currency, CLS connects directly to the corresponding central bank's real time gross settlement system. CLS maintains an account at each eligible currency’s central bank, through which funds are received and paid.
CLS is owned by some of the world’s leading FX banks. Each Shareholder and affiliated group of Shareholders has an equal vote in the governance of CLS Group Holdings AG. Membership in CLS is generally limited to these Shareholders and their affiliates. Central banks are eligible to become CLS Members without owning shares.
Settlement Members are direct participants in the CLS system and are required to be, or be affiliates of, Shareholders in CLS. A Settlement Member must have proven financial and operational capabilities and access to sufficient liquidity to support its financial commitments to CLS. Settlement Members may submit payment instructions relating to their own FX transactions as well as those of their customers (Third Parties).
Third Parties are customers of Settlement Members that wish to settle their FX transactions through CLS. Third Parties include banks, non-bank financial institutions, multinational corporations and funds. Settlement Members handle all payment instructions and funding on behalf of their Third Party customers since Third Parties have no direct access to, or relationship with, CLS. Most of the recent interest and growth in Third Party participation has come from the investment management industry.
Third Party Service Providers
Third party service providers are Settlement Members who offer CLS-related services to their customers, so that their customers may experience the benefits of CLS settlement as third parties.
A Settlement Member may choose to use correspondent banks (each, a Nostro), usually a Settlement Member or its affiliate, to make and receive payments on their behalf to CLS in specific currencies. Nostros provide account services within the country and currency they are domiciled. Settlement Members wishing to exchange payments with CLS may elect to utilize their own Nostro arrangements or seek bilateral agreements with alternate Nostro providers. A Settlement Member’s arrangement with its Nostro is governed by bilateral agreements that are negotiated independently.
Liquidity providers, often Settlement Members, are banks that commit to providing liquidity to CLS in each currency for which the settlement service is provided. These liquidity providers may be called upon only in certain scenarios, such as when a Settlement Member fails to meet its pay-in requirements in a particular currency and after all other failure management tools have been applied.
The smooth operation of the CLS ecosystem is dependent on a technology vendor community that provides software and services to CLS Members. CLS maintains formal relationships with these vendors through its Vendor Registration Program.
Vendors interested in applying for our Vendor Registration Program may email the CLS Vendor Relationship team.