Three new additions for CLS’ cross currency swaps service

The service forms part of CLSSettlement which has seen a 38% year on year increase in cross currency swaps for the first half of 2023.

Market infrastructure business, CLS, today confirmed the addition of three new settlement members, including Barclays Bank and Danske Bank. 

The companies have specifically enrolled in its crosscurrency swaps (CCS) settlement service. CCS is an extension of the payment-versus-payment (PvP) settlement service, CLSSettlement, to which the members can now send their cross-currency swaps.

Some of the world’s largest banks already utilise the service which has undergone continued growth in H1 2023, having seen a 38% increase in the values of CCS submitted to CLSSettlement compared to last year.

Lisa Danino-Lewis, chief growth officer at CLS, said: “We are delighted to welcome the latest additions to our CCS service. Their decision to join our platform is a testament to the risk mitigation and liquidity and operational efficiencies provided by the service, and it underscores our clients’ continued commitment to further mitigate settlement risk.”

According to the business, CCS flows are also multilaterally netted against all other FX transactions in CLSSettlement making it a more cost-effective service as regards clients’ daily funding requirements. In addition, it also provides the industry with ‘considerable’ liquidity optimisation.

Speaking to the increasing CCS volumes to CLSSettlement, CLS explained that it would work to support policymakers and regulators in their drive to promote the widespread adoption of PvP in order to reduce settlement risk. 

Jeppe Østerby Thomsen, global head of STIR trading at Danske Bank highlighted the importance of post-trade solutions in the region: “As a leading bank in the Scandinavian region, it is important for Danske Bank to have access to post-trade solutions that deliver risk mitigation and greater cost efficiencies. We are confident that CLS’s CCS service will help us achieve greater efficiency and transparency in our FX operations.”