Providing a global foreign exchange settlement solution for non-CLS members
Continuous Linked Settlement is a multicurrency settlement system that plays an important role in mitigating settlement risk in the FX markets and reducing systemic risk. CLS members settle trades between themselves in CLS and may also settle on behalf of non-member third parties.
SWIFT’s CLS-TPS supports the communication flow between CLS members and their third party customers who wish to settle their FX trades in CLS.
The CLS member receives a copy of their customer’s transaction with a counterparty (MT 300), for onward processing in CLS via Gross Direct Input or MT 304. The CLS member receives the matching status from CLS and reports back using Nostro account reporting over FIN.
This well-proven service offers straightforward implementation for both third parties (many of whom already use SWIFT) and CLS members.
A renewed version of SWIFT’s CLS Third Party Service will be introduced in 2017. It will replicate the existing flows in order to guarantee minimal impact on service providers and their third party customers. It will provide a lasting and reliable solution for existing and new users.
A comprehensive, global solution over SWIFT
SWIFT’s CLS-TPS connects CLS members and their third party customers worldwide over SWIFT, providing comprehensive coverage and communications flow using industry-standard messages.
Straightforward implementation and low operating costs
The service uses existing, proven infrastructure already available to most institutions. Implementation is straightforward and low cost, and operation is low cost too.
Enhances customer service and reduces settlement risk
Allows CLS members to provide a cost-effective, reliable and comprehensive route to CLS settlement for their third party customers.