CLS has announced that Standard Chartered has gone live on CLSNet, its automated bilateral payment netting calculation service for over 120 currencies. CLSNet standardizes and automates post-trade matching and netting processes, delivering risk mitigation, liquidity optimization and operational efficiencies for currency flows outside of CLSSettlement, including emerging market and developing economy (EMDE) currencies and same-day trades.
As settlement risk in the FX market remains a focus, particularly in EMDE currencies and other growing segments, market participants are looking for ways to mitigate risk effectively via automated post-trade services such as CLSNet. Demand for CLSNet continues to grow, particularly among financial institutions seeking to align with the best practices outlined in Principle 35 of the FX Global Code.
Alongside Standard Chartered, several Asian banks are joining the service. CTBC, the Hong Kong branch of a Taiwanese commercial bank, has gone live on CLSNet, meanwhile Maybank, a Malaysian bank, and Taishin, one of the largest commercial banks in Taiwan, have also committed to joining the CLSNet network to mitigate settlement risk within Asian currencies, particularly USD/CNH. Lisa Danino-Lewis, Chief Growth Officer, CLS commented: “We are delighted to welcome Standard Chartered, CTBC, Maybank and Taishin to the CLSNet community. We are seeing increased demand for proven solutions to address the challenges facing the FX market. As more participants join CLSNet, the resulting network effect will deliver even greater risk reduction and efficiency benefits for all users.”
