Cross currency swaps
Cross currency swaps trades have significant settlement risk exposure from the high value of the initial and final principal exchanges. In addition, settling these trades on a gross bilateral basis results in operational inefficiencies and liquidity constraints.
Our payment-versus-payment (PvP) settlement service
CLS settlement members can use our unique PvP settlement system and netting capabilities in conjunction with post-trade processing platforms – MarkitWire and SwapAgent – to mitigate FX settlement risk for cross currency swaps.
Mitigate settlement risk, while delivering operational and liquidity efficiencies for cross currency swap trades.
Improves
-
Operational efficiency
Reduces
- Liquidity and payment demand
- Settlement risk
- Funding costs for bilateral payments
FX Global Code
Supporting adherence to the FX Global Code through:
- Principle 35, settlement risk
Understand the process flow
Find out more
Press Release
Article
HSBC joins CLS and IHS Markit cross-currency swaps service
The FX ecosystem
3 min read
Product overview
CLSSettlement overview
Settlement
3 min read
Video
CLSSettlement in a day - how it works
Settlement
2 min watch