CLSSettlement
Central bank settlement membership
Mitigate settlement risk for your FX trades while benefiting from operational efficiencies, in addition to best-in-class netting and liquidity management. Our world-class payment-versus-payment settlement service delivers huge efficiencies and savings for our clients.
We protect our members and their clients from the most significant risk in the FX market – settlement risk. We do this by simultaneously settling payments relating to FX trades using our unique payment-versus-payment (PvP) system.
Reduce risk, improve efficiency and increase liquidity
We provide settlement services to over 75 of the world’s most important financial institutions and over 38,000 third-party participants. In addition to commercial institutions, we also offer a membership category to central banks to enable them to settle their FX transactions, while benefiting from the same risk mitigation and liquidity efficiencies as all other members.
Eligibility
We have developed specific criteria for central banks to join CLSSettlement. These have been established to mitigate liquidity, market, credit and operational risks to the settlement service, our participants and broader financial markets.
As a critical component of the global FX market, central bank participation in CLSSettlement enhances financial stability, and further reduces systemic risk and substantially strengthens our ecosystem.
Submission of payment instructions
Central bank settlement members are only eligible to submit payment instructions to CLSSettlement relating to underlying transactions entered into by the central bank, on behalf of or as agent for another central bank, or relating to its role as fiscal agent for the government. They cannot submit instructions to CLSSettlement on behalf of a commercial bank.
1Australian dollar, Canadian dollar, Danish krone, euro, Hong Kong dollar, Hungarian forint, Israeli shekel, Japanese yen, Korean won, Mexican peso, New Zealand dollar, Norwegian krone, Singapore dollar, South African rand, Swedish krona, Swiss franc, UK pound sterling and US dollar.