BNY Mellon and ING join CLSNet 18 January 2024UK, US Reporter: Carmella Haswell
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BNY Mellon and ING have agreed to join CLS’s bilateral payment netting calculation service, CLSNet.
The service, offered by global FX settlement infrastructure firm CLS Group, provides standardisation and centralisation for post-trade processes across a range of trade types — including same-day trades and non-deliverable forwards (NDF).
CLSNet aims to help reduce risk and achieve greater operational efficiency for a broad range of currency flows.
According to CLS, settlement risk in the foreign exchange (FX) market continues to be a focus, especially in emerging market currencies and other growing segments of the market.
Participants are looking for ways to mitigate risk effectively via automated post-trade services such as CLSNet, the firm adds.
Commenting on the news, CLS chief growth officer Lisa Danino-Lewis says: “BNY Mellon and ING will benefit from the risk mitigation, operational efficiencies and liquidity advantages that the service delivers.
“In addition to banks, CLSNet is directly accessible to most market participants, including funds, corporates and non-bank financial institutions, making its benefits widely available to the FX industry.”
Jason Vitale, head of global markets trading at BNY Mellon, adds: “We are continuously identifying the latest solutions that will enhance our clients' experience across the trade lifecycle. Joining CLSNet will enable us to provide clients with improvements in intraday liquidity and execution efficiency.”
Robbert Zee, financial markets operations lead at ING, states: “CLSNet provides the functionality to strengthen and standardise the post-trade processes across the global currency spectrum.
“As the largest Dutch bank with significant global operations, our participation in the service will be integral to our strategy to further improve operational efficiency and reduce risk for same-day currencies and currencies that are not currently eligible for CLSSettlement.”
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