First Abu Dhabi Bank (FAB), has signed a testing and trialling agreement with CLS for its confirmation, matching and netting service ‘CLSNet’. FAB will be able to automate and standardise the netting calculation and reconciliation process with counterparties by using CLSNet, thereby increasing efficiencies and reducing potential operational discrepancies. Netting – which offsets receivables against payments due and therefore reduces net payments and saves transaction costs – minimises FAB’s exposure with counterparties through reduced settlement notionals and subsequently improves credit line efficiencies.
Keith Tippell, Head of Product, CLS, commented: “The addition of FAB demonstrates the appeal of CLSNet to FX market participants trading in emerging market currencies. Given the sharp focus on settlement risk mitigation across the industry, CLS is investing further in evolving CLSNet to ensure broad-based adoption and, additionally, exploring new functionality related to liquidity optimisation and payment certainty.”