Deutsche Bank Joins CLSNet
Posted by Colin Lambert. Last updated: July 21, 2023
Deutsche Bank has gone live on CLS’s bilateral payment netting calculation service for over 120 currencies – CLSNet, CLS says this means eight of the top 12 global banks are on the service.
CLS says the service has seen a marked increase in adoption over the past year, with a year-on-year increase of over 400% in the average daily volume of net calculations in Q1 2023. “This reflects the industry’s growing need for risk reduction, operational efficiency and liquidity optimisation,” it states.
On 21 June 2023, the CLSNet hit a new daily notional high of $306 billion in the service, highlighting, CLS says, its network effect.
“With our network expanding globally, participants are experiencing significant improvements in liquidity optimisation, operational efficiencies and risk mitigation,” says Lisa Danino-Lewis, chief growth officer, CLS. “CLSNet is directly accessible to most market participants, ensuring that the benefits of the service are widely available to the FX industry.”
David Gary, head of FX trading North America, Deutsche Bank, adds, “Joining CLSNet is a logical progression in our continued growth strategy and commitment to promoting the effective functioning of the wholesale FX market. This move offers us not only the advantages of liquidity optimisation and risk mitigation, but also the added benefit of streamlined post-trade matching and netting processes, making our operations even more efficient.”