Harness the joint infrastructure power of CLS and DTCC to better manage your OTC credit derivatives cash flows. Improve overall post-trade efficiency and risk management.
Regulatory reform has led to a changing FX settlement landscape with a heightened focus on pre- and post-trade transparency and an increased requirement for transactional reporting.
CLS’s OTC Derivatives is an enhanced settlement service model for instructions relating to bilateral net payment obligations for the OTC credit derivatives market. Created in partnership with The Depository Trust & Clearing Corporation (DTCC), the service links DTCC’s Trade Information Warehouse with CLS’s central multicurrency cash settlement service and automates the processing of OTC credit derivatives-related cash flows.
Asset managers access the service via their custodians – a CLS Settlement member. The service supports nine currencies: AUD, GBP, CAD, CHF, EUR, HKD JPY, SGD and USD.
Instruction submissions: For each custodian participating in CLSSettlement, DTCC submits netted cash flow amounts for the next value date to CLS in the relevant currencies.
Validation: CLS accepts and validates the cash flows and the accounts.
Settlement: The DTCC cash flows are then incorporated into the custodian’s CLSSettlement pay-in schedule and settlement cycle for the next day, along with their submitted FX payment instructions.
Notifications: Notifications are sent back to DTCC following settlement on value date.
average settled each day
Benefits:
(Northern Hemisphere summer time)
Settlement date -1 | Settlement date | ||||||
Sydney | 04:00 | 08:00 | 14.30 | 16:00 | 17:00 | 18:00 | 20:00 |
Tokyo | 03:00 | 07:00 | 13.30 | 14:00 | 16:00 | 17:00 | 29:00 |
C.E.T | 20:00 | 00:00 | 16.30 | 07:00 | 08:00 | 09:00 | 11:00 |
London | 19:00 | 23:00 | 05.30 | 06:00 | 08:00 | 09:00 | 11:00 |
IPIS1 | RPIS2 | ST3 | SCTT4 | FCTT(AP)5 | FCTT(OC)6 | ||
Real-time information available on status of payment instructions to members and Deriv/SERV |
1IPIS - Initial pay-in schedule issued
2RPIS - Revised pay-in schedule issued
3ST - Start of CLS Bank settlement
4SCTT - Settlement completion target time
5FCTT(AP) - Asia Pacific funding completion target time
6FCTT(OC) - Non-Asia Pacific funding completion target time
If you are considering how to better manage risk for your OTC derivatives cash flows:
For more information about the service and DTCC’s Trade Information Warehouse, please contact TIW@DTCC.com
Using CLS products and services plays an integral part in helping you comply with the FX Global Code.