SWIFT for Foreign Exchange (FX) Treasury Market
Delivering secure, reliable, efficient and cost effective messaging to allow Foreign Exchange (FX) treasury market to process transactions, mitigate risk and increase operational efficiency
Supporting the global FX treasury market
The foreign exchange (FX) treasury market is a key part of global economic activity - it is the largest financial market by value and is integral to global commerce.
The FX market is decentralised with no central exchange or clearing facility. As an alternative to bilateral settlement, with the inherent risk of counterparty default, financial institutions can use CLS to settle FX transactions, including spots, forwards, swaps and options.
CLS is owned by the world’s leading FX banks. It is a systemically important and regulated by the Federal Reserve Bank of New York.
CLS mitigates settlement risk through the provision of its unique payment versus payment settlement service which has direct links to the RTGS systems of the currencies it settles.
CLS provides its multi-currency cash settlement service to its 60 direct member banks and numerous indirect (third party) members. These direct and indirect members use SWIFT to provide secure, robust and scalable connectivity to CLS.
Factsheet MI Channel
FX / treasury systems have to work. Consistently and reliably.
- Ensure adequate provisions for credit and liquidity management
- Manage operational risks and costs
- Ensure regulatory compliance
The global FX treasury market must deliver, secure, reliable, efficient and cost-effective transaction processing on an entire community scale.
SWIFT solutions for CLS
CLS Member Gateway Replacement
SWIFT provides a global solution that supports the communication flows between CLS and its members - both direct and indirect. The service covers all FX-related derivative instruments supported by CLS.
CLS replaces its existing member access 'gateway' to automate intra-day settlement through standardisation and deliver increased performance and volume capacity. SWIFT’s new CLS Member Gateway replaces proprietary XML messages with standardised ISO 20022 messaging. The migration is scheduled to complete by Q1 2016.
CLS Third-Party Service
SWIFT provides a global solution that supports the communication flows between CLS members and third parties. The service covers all FX-related derivative instruments supported by CLS. The solution is offered by over 20 CLS settlement members to more than 300 active users. Enhanced resiliency, standardisation, reduced complexity, improved security, increased performance and enhanced support.
SWIFT is the sole messaging provider supporting CLS and its community
- Secure, resilient and scalable connectivity and messaging
- Global reach to 10,800 counterparties
- Deep ISO 20022 expertise and standardisation capabilities