J.P. Morgan and Goldman Sachs have gone live on CLS’s bilateral, a same-day foreign exchange (FX) gross payment-versus-payment settlement service.
CLSNow enables banks to exchange currency positions with mitigated settlement risk on a near-real-time basis.
Currencies offered include the Canadian dollar, euro, UK pound sterling, and US dollar.
The service mitigates FX settlement risk, enhances liquidity management, and provides balance sheet benefits for banks.
Alan Marquard, chief strategy and development officer at CLS, said: “With traditional sources of intraday liquidity contracting, there is a growing need for a safe, intraday currency settlement service. The launch of CLSNow meets this need, further enhances settlement risk mitigation and is another example of how CLS is working to solve challenges for the foreign exchange industry."
Scott Lucas, head of intraday liquidity, J.P. Morgan, commented: "Removing risk and improving the availability of intraday liquidity is central to providing a best-in-class offering to our clients.”
He added: “The go-live of CLSNow is a significant step for the industry and can positively evolve the same-day market by delivering these risk and liquidity benefits. We are delighted to have helped develop, and be a first adopter of the new service.”
