Market infrastructure group CLS has unveiled its newly redesigned CLSClearedFX service, in a bid to provide a consolidated settlement model for central counterparties and their clearing members.
Tharidu Gamwara
The redesign builds on CLSClearedFX’s current platform, a payment-versus-payment settlement service allowing CCPs and clearing members to settle clear FX and derivative trades while simultaneously mitigating risk.
Through the offering, CCPs will be able to integrate flows into the main CLSSettlement sessions to connect and submit bilateral settlement instructions for their clearing members, with the aim of enhancing risk mitigation, operational efficiency and liquidity.
Additionally, LCH Forex Clear has been named as the first CCP to go live on the platform, combining its settlements of cleared deliverable FX contracts into the main CLSSettlement session.
Tharidu Gamwara, managing director, business manager for global currencies and emerging markets trading at JP Morgan said: “CLSSettlement and LCH ForexClear are industry leading post-trade FX solutions. The operational efficiencies derived from both services will be advantageous to our business, offering multiple benefits that come from cleared FX trades being integrated in the main CLSSettlement session through CLSClearedFX.”
Through LCH ForexClear’s integration, the new offering is expected to address challenges associated with separate workflows and provide a more consolidated service, to ultimately reduce settlement costs.
Andrew Batchelor, head of ForexClear, LCH said: “LCH ForexClear was developed in response to customer demand for solutions that mitigate counterparty credit risk and provide improved financial resource efficiencies. ForexClear and CLS operating under the new redesigned service, will be instrumental in continuing to provide more efficient risk management in the global FX market.”