CLSNet wins “Market Infrastructure Project of the Year” at Global Custodian Leaders in Custody Awards
CLS announces that is has been named the winner of the Market Infrastructure Project of the Year at the Global Custodian Leaders in Custody Awards 2023. The award recognizes CLSNet – CLS’s automated bilateral payment netting calculation service – and its significant market penetration over the past year.
CLSNet is designed to standardize and centralize post-trade processes for over 120 currencies across various trade types, helping market participants to reduce risk and achieve greater operational efficiency for a broader range of their currency flows. 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, market participants are looking for ways to mitigate risk effectively.
CLSNet’s growth and achievements over the past 12 months have been significant. In Q1 2023, CLSNet recorded a year-on-year increase of over 400% in the average daily volume of net calculations, reflecting the industry's growing need for risk reduction, operational efficiency and liquidity optimization. In H2 2022, the service surpassed USD100 billion in the average daily notional of net calculations and reached a daily peak of USD274 billion in March 2023, highlighting its network effect. Additionally, the CLSNet network has grown in the last 12 months with First Abu Dhabi Bank and UBS going live and Deutsche Bank and MUFG both at various stages of onboarding to the service.
“The award underscores the growing focus on the importance of risk mitigation, operational efficiency and liquidity management for FX market participants amidst settlement risk concerns for FX transactions ”
Chief Growth Officer
Commenting on the award win, Keith Tippell, Chief Product Officer at CLS, said: “We are proud of the current momentum behind CLSNet, and this award is testament to its success. Building large-scale post-trade processing networks always requires a major industry effort, and we thank our customers for their ongoing collaboration as we continue to evolve the service.”
Adding to this, Lisa Danino-Lewis, Chief Growth Officer at CLS, said: “We are honored to receive this recognition from Global Custodian. The award underscores the growing focus on the importance of risk mitigation, operational efficiency and liquidity management for FX market participants amidst settlement risk concerns for FX transactions that currently cannot settle on a payment-versus-payment basis, as well as the drive to increase efficiency and automation in the FX netting process. This platform is directly accessible to most market participants, making its benefits widely available to the FX industry.”