US financial institution CLS has enrolled three settlement members into its cross currency swaps (CCS) settlement service, including Barclays Bank and Danske Bank.
The CCS service is an extension of CLS’s payment-versus-payment (PvP) settlement service – CLSSettlement.
According to the group, CLSSettlement offers CCS transaction settlement solutions while reducing settlement risk and optimising liquidity.
CLSSettlement witnessed a 38% year-on-year increase in CCS trading volumes in H1 2023, cited the group.
“Within CLSSettlement, CCS flows are subjected to multilateral netting against all other FX transactions,” stated CLS, highlighting that the process reduces clients’ daily funding needs and boosts industry liquidity optimisation.
Lisa Danino-Lewis, chief growth officer at CLS, said: “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 mitigate settlement risk further.”
Jeppe Østerby Thomsen, global head of STIR trading at Danske Bank, commented: “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.”
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