BNY Mellon has become the latest to join bilateral payment netting calculation service, CLSNet.
The platform standardises and centralises post-trade processes across a range of trade types, including same-day trades and NDFs, which aims to reduce risk and achieve greater operational efficiency for a range of currency flows. As settlement risk in the FX market continues to be a focus, especially in emerging market currencies and other growing segments of the market, participants are looking for ways to mitigate risk effectively via automated post-trade services.
Lisa Danino-Lewis, chief growth officer at CLS, said: “We are delighted that BNY Mellon is joining CLSNet’s growing community of users and will benefit from the risk mitigation, operational efficiencies and liquidity advantages that the service delivers. In addition to banks, CLSNet is directly accessible to most market participants, including funds, corporates and non-bank financial institutions, making its benefits widely available to the FX industry.”
CLSNet has experienced record growth this year, with the average daily notional value of net calculations consistently exceeding $115 billion in the last 12 months, and on 20 December 2023 it reached a record daily notional of $445 billion netted.
Jason Vitale, head of global markets trading, BNY Mellon, added: “We are continuously identifying the latest solutions that will enhance our clients’ experience across the trade lifecycle. By joining CLSNet, this will enable us to provide clients with improvements in intraday liquidity and execution efficiency.”