Cross currency swaps

Mitigate FX settlement risk, improve operational efficiencies and reduce your liquidity and payment demand for cross currency swap trades using our world-leading settlement service.

Mitigate FX settlement risk and reduce your liquidity and payment demand for cross currency swap trades.

CLS and Markit have developed a payment-versus-payment (PvP) settlement service for the cross currency swaps market.

Our payment-versus-payment (PvP) settlement service for cross currency swaps helps you mitigate settlement risk

Cross currency swaps trades have significant settlement risk exposure from the high value of the initial and final principal exchanges. In addition, settling these trades on a gross bilateral basis results in operational inefficiencies, high use of settlement limits and liquidity constraints. Our payment-versus-payment (PvP) settlement service for cross currency swaps helps you mitigate settlement risk, while delivering operational and liquidity efficiencies.

Our settlement service for cross currency swaps uses our unique PvP settlement system and liquidity netting capabilities in conjunction with the MarkitSERV trade booking platform.

The benefits

  • Settlement risk mitigation
  • Operational efficiency through automation and standardization
  • Reduced liquidity and payment demand

The Cross Currency Swaps service:

     


Mitigates FX settlement risk in the world’s single largest market



Is available directly or indirectly to FX market participants


Settles payment instructions relating to transactions in 18 currencies

Cross currency swaps