CLSNet
CLSNet is a bilateral payment netting calculation service, for foreign exchange trades. As a centralized platform, CLSNet enhances the FX netting process, delivering operational risk mitigation by standardizing and automating the net calculation process.
CLSNet improves
- Operational risk mitigation through standardization and automation
- Intraday liquidity
- Post-trade FX matching and netting processes
- Adherence to principles 35 and 50 of the FX Global Code
CLSNet reduces
- Funding and number of payments required
- Inconsistent FX matching and FX netting
- Credit consumption
- Intraday overdraft costs and correspondent bank charges
- Communication required to confirm positions pre-settlement
Market adoption of CLSNet
Eight of the top ten1 global banks have joined our FX netting calculation service with an average daily netted value2 of over USD140 billion over the last 12 months. However, our netting calculation service isn't just for banks.
Funds, corporates and non-bank financial institutions
Other organizations can also benefit from streamlining their post-trade matching and netting processes to deliver operational risk mitigation over 120 currencies, including emerging market currencies.3
CLSNet improves the process of netting
To reduce payment obligations exposed to settlement risk, particularly in emerging market currencies such as CNH, THB, PLN, CZK and TRY.
1According to the 2022 Euromoney Foreign Exchange Survey.
2 Netted value refers to bilateral net payment amounts calculated by CLSNet
3CLSNet’s coverage includes currencies that are not issued by countries on a sanctioned list that would prevent CLS from conducting business with those countries and their issued currencies.
Advancing settlement risk mitigation
Leveraging our unique position at the center of the FX industry and our extensive market infrastructure experience, we focus on addressing settlement risk for a broader range of currencies and market participants.
Our priority is to deliver functional enhancements to CLSNet that provide immediate benefits to our clients. This includes mitigating risk, optimizing liquidity and creating operational efficiencies in the netting calculation process for currency flows outside of CLSSettlement. By continuously improving our FX netting calculation capabilities, we aim to further streamline financial transactions and enhance the overall efficiency of foreign exchange trading.
FSB roadmap and FX Global Code guidance
- Ongoing engagement with public policy community
- Formal responses to consultations (FSB roadmap / FX Global Code)
- Efforts to promote adoption of and enhancements to the FX Global Code
Find out more
Case study
CLSNet - UBS
Product overview
CLSNet
Video
CLSNet - how it works
The FX ecosystem
Case study
CLSNet - Bank of China (Hong Kong)
The FX ecosystem
Video