CLS provides settlement risk mitigation services to participants both directly (for its Settlement Members) and indirectly (through Settlement Members providing access to third parties).
As well as mitigating settlement risk, there are unique benefits for banks that choose to participate directly in CLS, including:
Liquidity efficiencies through the multilateral payment netting provided by the CLS settlement service
Operational efficiencies through standardization and enhanced straight-through processing
Participation in a unique market infrastructure which creates opportunities for dialogue across the FX community
New revenue opportunities through increased trading capacity, the opportunity to offer third party services to customers and nostro services
Given the interconnected nature of the CLS ecosystem, institutions must be capable of successfully participating in CLS without posing unnecessary risk to the other participants and the settlement system.
Accessing CLS Settlement as a Third Party
Funds, banks, and corporates use CLS to mitigate settlement risk. Any institution or fund that trades either directly or indirectly in the six instruments settled in CLS can derive the risk and efficiency benefits delivered by CLS by using a CLS third party service provider. These are CLS Settlement Members that offer settlement as a service to other institutions.
Explore this section to discover how CLS settlement can benefit your organization, as well as specific information on the practical steps you need to take to get started and links to service providers. Alternatively, you can contact CLS to discuss your needs in detail.