Barclays Goes Live on CLS’s Cross Currency Swaps Service

CLS says that Barclays has officially gone live on its cross currency swaps (CCS) service – an extension of CLS’s payment-versus-payment (PvP) settlement service, CLSSettlement.

The settlement service provider says by integrating CCS flows into CLSSettlement, users can multilaterally net against all other FX transactions, providing “substantial liquidity optimisation benefits as well as reducing daily funding requirements for clients”. The new client comes amidst what CLS says is a “notable rise” in activity, with values of CCS submitted to CLSSettlement rising 48% year-on-year in 2023.

“Barclays Bank going live on our CCS service is a positive step in our continual work toward making the global FX market more resilient and efficient,” says Lisa Danino-Lewis, chief growth officer at CLS. “The adoption of our CCS service by Barclays, one of the world’s premier banking institutions, demonstrates the value and trust placed in our risk mitigation and liquidity management solutions by the industry. The growing number of institutions, as well as growing volumes on the platform, underlines the industry’s commitment towards minimizing settlement risk in the FX market.”

Michael Pollak, head of cross currency trading, Barclays Bank PLC, adds, “As markets continue to navigate an uncertain period, being able to mitigate FX settlement risk via CLS’s CCS service is a vital part of our risk management practices. Through multilateral netting, we can also optimise our liquidity, reduce our funding requirements and remove friction from the market’s infrastructure. We look forward to the continued benefits the service will bring to our operations and the wider industry.”