Swift for Treasury Market Infrastructures
CLS is a unique financial market infra-structure of critical importance to the FX industry. Swift provides the secure resilient network connectivity channel to reach CLS's services.
Swift for Treasury Market Infrastructures
Overview
CLS is the world’s leading provider of FX settlement services.
Established in 2002 as a payment-versus-payment (PvP) settlement system to reduce the principal risk arising from settling FX transactions, CLS’s global settlement infrastructure reduces systemic risk and provides standardization for participants in many of the world’s most actively traded currencies.
CLS’s complementary products are designed to enable clients to manage risk most effectively across the full FX lifecycle – whether through more efficient processing tools or market intelligence derived from the largest single source of FX executed data available to the market.
CLS’s PvP settlement service, CLSSettlement, settles on average over $6 trillion per day in 18 currencies for 70 settlement members and over 30,000 third-party participants.
Swift offers a CLS-TPS copy service to CLS settlement members for them to receive copies of MT 300s sent by their clients for settlement in CLSSettlement.
CLS connectivity channels
| CLS solutions | Description | Swift Connectivity |
|---|---|---|
|
CLSSettlement |
Settles trades using multilateral netting, and providing a flexible payment-versus-payment (PvP) system. |
The 70 CLS settlement members can use the following Swift channels: a MI Channel that utilizes ISO 20022-based XML messages; or a FIN MT Channel with FIN messages. There is also a browser-based Graphical User Interface over SwiftNet Browse. |
| CLSNow | CLSNow is a gross PvP settlement service to mitigate FX settlement risk associated with the out-legs of CLSSettlement in/out swaps and other same-day FX transactions.
The service provides bilateral same-day payment-versus-payment gross settlement in CAD, CHF, EUR, GBP and USD. |
|
| Cross Currency Swaps | This service is an extension of CLSSettlement for instructions relating to bilateral net payment obligations for the over -the-counter (OTC) credit derivatives market. Created in partnership with The Depository Trust & Clearing Corporation (DTCC), the service links DTCC’s trade information warehouse with CLSSettlement. | MarkitSERV uses the MI Channel to connect to CLS Settlement. |
| Credit Derivatives | This service is an extension of CLSSettlement for instructions relating to bilateral net payment obligations for the over -the-counter (OTC) credit derivatives market. Created in partnership with The Depository Trust & Clearing Corporation (DTCC), the service links DTCC’s trade information warehouse with CLSSettlement. |
DTCC connect to CLSSettlement via Swift. |
|
CLSClearedFX |
CLSClearedFX is a PvP settlement service specifically designed for cleared FX products. The service enables central counterparties (CCPs) and their clearing members to safely and effectively mitigate settlement risk when settling cleared FX products. |
LCH ‘ForexCLEAR’ connect via the MI Channel. |
|
CLSNet |
CLSNet is a standardized, automated bilateral payment netting calculation service across 120 currencies for buy-side and sell-side institutions. As a centralized platform, it provides users with a single common record of their net payment obligations to streamline post-trade matching and netting processes. |
CLSNet participants may use one of the following Swift channels: MI channel to exchange ISO 20022 XML messages; or a FIN channel to exchange MT messages. A browser-based Web User Interface is available over Swift Web Access channel. |
Related products
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MI Channel
MI Channel streamlines data exchange between market infrastructure communities, for domestic and international payments, securities, and FX markets. It offers high throughput, intelligent batching, compression and resilient store-and-forward delivery. Recovery features ensure no lost messages, with data replay for recovery in the event of a failure. Easily integrate with back-office applications using industry standard middleware (IBM MQ) and leverage existing Swift communication software (Alliance Gateway and SwiftNet Link) and infrastructure for cost savings.
Read more -
FIN
FIN enables financial institutions to exchange individual structured (MT and ISO 15022 message formats) financial messages securely and reliably. It is based on a distributed processing architecture with full, built-in redundancy to ensure maximum availability.
Read more -
Swift Web Access
With cyber threats an ever-present risk, the internet may not provide the security and reliability demanded for mission-critical applications. But, proprietary channels require dedicated infrastructure and incur set up costs for each channel added.
That’s why we’re offering Swift Web Access, a secure and reliable channel to access web applications over Swift. It offers valuable benefits to both users and service providers.
Read more