SWIFT and CLS

CLS is a unique market infra-structure of critical importance to the FX industry. SWIFT provides the secure resilient network connectivity channel to reach CLS.

CLS Bank

CLS Bank is the world’s leading provider of FX settlement services.  

Established in 2002 as a payment-versus-payment (PvP) system to reduce the principal risk arising from settling FX transactions, CLS transformed FX with their innovative approach to multilateral netting and settlement. 

CLS specialists have worked to reduce systemic risk ever since, while creating operational efficiencies and significant cost savings for their clients. Today CLS are leveraging their experience and substantial market intelligence to address the market’s wider settlement, processing and data needs. Their products make the trading process faster, easier, safer and more cost-effective – empowering their clients’ success.

The CLS Settlement service is systemically important to the FX market. It settles an average of USD5 trillion per day in 18 currencies for 70 settlement members and over 24,000 third-party customers. Supplementing this service, SWIFT offers a CLS-TPS copy service to CLS Members for them to receive copies of MT 300s sent by their clients for settlement in CLS.

CLS also offers additional services as summarised below.

SWIFT connectivity channels to CLS

CLS Services & Solutions Description SWIFT Connectivity  
CLSSettlement Settles trades using multi-lateral 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.

Subscribe to the CLS Settlement Services

CLSSameday A same-day gross payment-versus-payment (PvP) settlement service to mitigate settlement risk and optimize the use of available liquidity in the USD/CAD same-day market.
CLSNow A new same-day gross payment-versus-payment (PvP) settlement service to mitigate settlement risk and optimize the use of available liquidity in the CAD, CHF, EUR, GBP and USD same-day market.    
Cross Currency Swaps This service is an extension of the CLSSettlement service and uses the MarkitWire trade booking platform to allow settlement members to send their Cross currency swap trades settlement flows into CLSSettlement. MarkitSERV uses the MI Channel to connect to CLS Settlement.  
Credit Derivatives CLS and The Depository Trust & Clearing Corporation (DTCC) provide an integrated global payment processing infrastructure for the over-the-counter (OTC) credit derivatives market.

The Depository Trust & Clearing Corporation (DTCC) connect to CLS Settlement via SWIFT.

 

CLSClearedFX

CLSClearedFX is a new 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’ and Deutsche Bourse ‘Eurex’ connect via the MI Channel.

Subscribe to the CLSClearedFX Service

CLSNet CLSNet is a standardized, automated bilateral payment netting service for buy-side and sell-side institutions. Built on a distributed ledger technology (DLT) platform, CLSNet will introduce risk mitigation for trades not settling in CLSSettlement by standardizing and automating post-trade matching and netting processes.

Any SWIFT user can use the following SWIFT channels: MI Channel, FINInform (MT300 copy), MT304.

Subscribe to the CLSNet Services

CLS Services & Solutions Description SWIFT Connectivity  
CLSSettlement Settles trades using multi-lateral 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.

Subscribe to the CLS Settlement Services

CLSSameday A same-day gross payment-versus-payment (PvP) settlement service to mitigate settlement risk and optimize the use of available liquidity in the USD/CAD same-day market.
CLSNow A new same-day gross payment-versus-payment (PvP) settlement service to mitigate settlement risk and optimize the use of available liquidity in the CAD, CHF, EUR, GBP and USD same-day market.    
Cross Currency Swaps This service is an extension of the CLSSettlement service and uses the MarkitWire trade booking platform to allow settlement members to send their Cross currency swap trades settlement flows into CLSSettlement. MarkitSERV uses the MI Channel to connect to CLS Settlement.  
Credit Derivatives CLS and The Depository Trust & Clearing Corporation (DTCC) provide an integrated global payment processing infrastructure for the over-the-counter (OTC) credit derivatives market.

The Depository Trust & Clearing Corporation (DTCC) connect to CLS Settlement via SWIFT.

 

CLSClearedFX

CLSClearedFX is a new 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’ and Deutsche Bourse ‘Eurex’ connect via the MI Channel.

Subscribe to the CLSClearedFX Service

CLSNet CLSNet is a standardized, automated bilateral payment netting service for buy-side and sell-side institutions. Built on a distributed ledger technology (DLT) platform, CLSNet will introduce risk mitigation for trades not settling in CLSSettlement by standardizing and automating post-trade matching and netting processes.

Any SWIFT user can use the following SWIFT channels: MI Channel, FINInform (MT300 copy), MT304.

Subscribe to the CLSNet Services

MI Channel

MI Channel optimises the exchange of very large amounts of data between market infrastructure communities in the domestic and international payments, securities and FX markets.

FIN messaging

The SWIFT FIN network enables institutions to send centrally validated, secure and reliable messages to their counterparty, that also provides many advanced delivery options such as automatic copying to one or more destinations.

WebAccess

SWIFT WebAccess is a secure, with SWIFT managed user access, and a reliable channel enabling access to multiple web applications from a single window.

SWIFT and CLS