CLS has announced the launch of its redesigned CLSClearedFX service, with LCH ForexClear becoming the first central counterparty (CCP) to go live. CLSClearedFX is a payment-versus-payment settlement service that enables CCPs and their clearing members to reduce settlement risk for cleared FX and derivative trades.
The updated service builds on CLS’s existing CLSSettlement platform, allowing CCPs to directly submit bilateral settlement instructions on behalf of members. This integration provides operational efficiencies, enhanced risk mitigation, and improved liquidity through a consolidated settlement model. LCH ForexClear’s successful transition means its cleared deliverable FX contracts are now settled within the main CLSSettlement session, removing the need for separate workflows and funding streams, thus lowering overall settlement costs.
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