11 December 2020

CLS, a market infrastructure group delivering settlement, processing and data solutions, today announces that it has won the award for “Best Trading Infrastructure Provider” at this year’s American Financial Technology Awards hosted by WatersTechnology.

CLS was recognized for its FX settlement solutions and its role as a systemically important financial market infrastructure critical to the orderly functioning of the global FX market - protecting settlement members, and their clients, from settlement risk through its payment-versus-payment (PvP) system (CLSSettlement).

Covid-19 presented the latest challenge for CLS in the form of extreme market volatility and increased FX trading. Despite record volumes in March – which saw the highest CBOE Volatility Index (VIX) ever recorded – CLS settled on time and with no issues or delays, reinforcing the importance of resilient financial market infrastructures during times of crisis and the need to mitigate FX settlement risk.

The award also recognized CLS’s ability to deliver operational and cost efficiencies to its clients and its ongoing assessment of the FX market for opportunities to enhance systemic risk mitigation. CLS has developed ancillary services to further enhance settlement risk mitigation in the FX market. This includes CLSClearedFX, the first payment-versus-payment (PvP) settlement service for over-the-counter cleared FX derivatives, and CLSNow, a same-day gross PvP settlement service to mitigate settlement risk associated with same-day trades that are currently settled bilaterally.

Marc Bayle de Jesse, CEO at CLS, commented: “We are very pleased to be recognized for our efforts to make the FX market safer, smoother and more cost effective for our clients. Through CLSSettlement and our ancillary services, market participants have access to the highest standard of FX settlement risk mitigation, as well as improved funding and operational efficiencies. Congratulations to the team involved for this achievement.

“Settlement risk remains a priority for the FX industry, and we will continue to work closely with key regulatory stakeholders and market participants to address it.”

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