Today CLS, the forex market infrastructure, announced a deal with Finastra to enable Finastra’s clients to use CLSNet, the blockchain settlement system for secondary currencies. The system is already in use by Goldman Sachs, Morgan Stanely, Bank of America, BNP Paribas, Citibank, Deutsche Bank, Morgan Stanley and others.
CLSSettlement provides its forex settlement services for the top 18 world currencies and settles about $5.5 trillion payments per day. It introduced CLSNet to enable a netting service for the other 120 or so currencies.
Rather than having to settle every transaction, creating an automated netting facility reduces risk. It means less liquidity is required in emerging currencies and also reduces the inefficiencies and potential errors from manually calculating net positions. Given that it generally costs more to settle emerging market currencies, significant savings can be made through netting.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
