CLS Adds Three Banks to CLSNet
Posted by Colin Lambert. Last updated: June 10, 2022
CLS says Deutsche Bank, Mashreq and Standard Chartered are at various stages of onboarding to CLSNet, a standardised, automated bilateral payment netting calculation service for approximately 120 currencies and the utility’s solution for non-CLS Settlement currencies. CLS says its community of banks on the service now includes seven of the top 10 global players.
“The addition of Deutsche Bank, Mashreq and Standard Chartered demonstrates the appeal of CLSNet to all market participants exploring ways to mitigate settlement risk, reduce operational costs and optimise liquidity for their post-trade FX trading processes,” says Lisa Danino-Lewis, chief growth officer, CLS. “Given the sharp focus on settlement risk mitigation across the industry, CLS is collaborating with market participants to further evolve CLSNet and to facilitate adoption for a wide range of participants.”
Mark Edwards, group head of operations, Mashreq adds, “CLSNet will enable us to not only mitigate risk and improve efficiency, but also optimise liquidity and reduce funding requirements for our front office. This will deliver significant benefit for our institution and the broader FX ecosystem. Participating in CLSNet also supports Mashreq’s adherence to the principles of the FX Global Code.”
Meanwhile, Paul Scott, managing director, financial markets operations, Standard Chartered, says, “We support efforts to address systemic risk in the broader FX market, and so welcome the opportunity to collaborate with CLS to achieve this.”