Barclays and Danske Bank enroll in CLS’ cross currency swaps service
08 September 2023 US
Image: WrightStudio
CLS welcomes three settlement members, including Barclays Bank and Danske Bank, to its cross currency swaps (CCS) settlement service.
The service has experienced increased growth in recent months, according to CLS, with a 38 per cent year-on-year increase in the values of CCS submitted to CLSSettlement in H1 2023.
The CCS service is an extension of CLS’ payment-versus-payment (PvP) settlement service, CLSSettlement. It enables members to settle their CCS in CLSSettlement.
In addition to mitigating settlement risk, the CCS flows are multilaterally netted against all other foreign exchange (FX) transactions in CLSSettlement, the firm explains, resulting in a reduction of daily funding requirements for clients and considerable liquidity optimisation benefits across the industry.
Lisa Danino-Lewis, chief growth officer, at CLS, says: "Their decision to join our platform is a testament to the risk mitigation and liquidity and operational efficiencies provided by the service, and it underscores our clients’ continued commitment to further mitigate settlement risk.”
Jeppe Østerby Thomsen, global head of short-term interest rate trading at Danske Bank, adds: "As a leading bank in the Scandinavian region, it is important for Danske Bank to have access to post-trade solutions that deliver risk mitigation and greater cost efficiencies. We are confident that CLS's CCS service will help us achieve greater efficiency and transparency in our FX operations.”
The service has experienced increased growth in recent months, according to CLS, with a 38 per cent year-on-year increase in the values of CCS submitted to CLSSettlement in H1 2023.
The CCS service is an extension of CLS’ payment-versus-payment (PvP) settlement service, CLSSettlement. It enables members to settle their CCS in CLSSettlement.
In addition to mitigating settlement risk, the CCS flows are multilaterally netted against all other foreign exchange (FX) transactions in CLSSettlement, the firm explains, resulting in a reduction of daily funding requirements for clients and considerable liquidity optimisation benefits across the industry.
Lisa Danino-Lewis, chief growth officer, at CLS, says: "Their decision to join our platform is a testament to the risk mitigation and liquidity and operational efficiencies provided by the service, and it underscores our clients’ continued commitment to further mitigate settlement risk.”
Jeppe Østerby Thomsen, global head of short-term interest rate trading at Danske Bank, adds: "As a leading bank in the Scandinavian region, it is important for Danske Bank to have access to post-trade solutions that deliver risk mitigation and greater cost efficiencies. We are confident that CLS's CCS service will help us achieve greater efficiency and transparency in our FX operations.”
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