CLS, the global financial market infrastructure group, has announced that BNY is the latest financial institution to go live on CLSNet, the automated bilateral payment netting calculation service designed to standardise and automate post-trade processes for over 120 currencies. BNY will utilise the platform to improve liquidity optimisation and operational efficiencies, specifically focusing on currency flows outside of the primary CLSSettlement service, such as emerging market currencies and same-day trades.
The adoption of CLSNet has seen consistent growth, with the platform recording an average daily netted value of USD 177 billion over the last 12 months – a 9% increase compared to the previous year. BNY joins a growing community that includes the world’s top 12 global banks, alongside various regional banks, funds, and corporates. By centralising the netting calculation process, the service significantly reduces the volume of payments exposed to settlement risk.
The move comes at a time of increased regulatory focus on FX settlement risk, particularly as trading volumes rise in developing economy currencies. By integrating CLSNet, participants can better align with the FX Global Code’s best practices, specifically Principle 35. The service provides a scalable solution for market participants to mitigate risk through automated post-trade matching, ensuring more robust and transparent settlement workflows across the global FX ecosystem.
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