CLS wins “Best Settlement Initiative” for CLSSettlement at FX Markets e-FX Awards 2023
CLS has been named the winner of the Best Settlement Initiative award at the FX Markets e-FX Awards 2023. The award recognizes the growth of CLSSettlement, CLS’s unique payment-versus-payment (PvP) settlement system, which has seen record volumes over the last year, as well as the broader strengths of CLS in mitigating settlement risk and increasing efficiency in the FX markets.
Each day, CLS settles approximately USD6.5 trillion of payments in 18 of the most actively traded currencies globally, protecting over 70 settlement members, which include the world’s leading financial institutions, and over 30,000 third-party participants from the most significant risk in the FX market – settlement risk. CLS does this by simultaneously settling payments relating to FX trades using its PvP system.
CLSSettlement’s milestones and achievements over the past 12 months have been significant. In 2022, CLS settled an average daily value of USD6.5 trillion – the highest daily average recorded since its inception. The asset management community, accessing CLSSettlement indirectly through settlement member banks, has been a major contributor to this growth.
The win also recognizes CLS’s focus on growing its standardized, automated bilateral payment netting calculation service, CLSNet. As settlement risk in the FX market continues to be an area of focus, especially in emerging market currencies and other growing segments of the market, participants are looking for ways to mitigate risk effectively.
CLSNet has broader reach in terms of market participants and the currencies it supports. It is directly accessible to both CLS settlement members and other market participants, providing greater access to its risk reduction benefits while delivering enhanced operational efficiency for a wider range of their currency flows. As a result, the growth of CLSNet increased exponentially over the course of 2022 and has continued to increase in 2023.
Commenting on the award win, Keith Tippell, Chief Product Officer at CLS, said: “We are delighted to have won the award as a result of the growth in PvP settlement volumes in CLS-eligible currencies and the current momentum behind CLSNet. It recognizes our commitment to providing market participants with access to products that not only provide risk mitigation, but deliver significant operational and liquidity efficiencies for FX market participants.”
Adding to this, Lisa Danino-Lewis, Chief Growth Officer at CLS, said: “We are honored to receive this recognition from FX Markets. The award underscores the growing importance of risk mitigation, efficiency and liquidity in the FX market, as well as the consistent growth of CLSSettlement and CLSNet.”
“The award underscores the growing importance of risk mitigation, efficiency and liquidity in the FX market, as well as the consistent growth of CLSSettlement and CLSNet”
Chief Growth Officer