Today CLS announced that Actinver, BNP Paribas, Citibank and JP Morgan have joined its foreign exchange payment netting system CLSNet, which leverages distributed ledger technology (DLT). There are now nine institutions using the platform. It’s been more than a year since CLS announced the launch of the service with its first customers, Goldman Sachs and Morgan Stanley.
CLS runs another service, CLS Settlement, which processes more than $5 trillion in foreign exchange payments daily and is considered to be systemically important by U.S. regulators. But that platform only deals with 18 major currencies. The role of CLSNet was to expand CLS services to 120 currencies.
“CLSNet brings high-quality industry standardization to previously fragmented and inefficient bilateral netting models,” said Mike Lawrence, Global CAO Rates & Currencies, Citibank. “It will enable broader access to settlement netting as a risk mitigant at an industry level, whilst delivering significant operational efficiencies as the network builds.”
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