CLS announced that Barclays Bank has gone live on its Cross Currency Swaps (CCS) service. As public policy efforts to mitigate settlement risk have increased, CLS’s CCS service has seen a notable rise in activity with Values of CCS submitted to CLSSettlement up 48% year-on-year in 2023.
The CCS service – an extension of CLS’s unique payment-versus-payment (PvP) settlement service, CLSSettlement – mitigates settlement risk for CCS transactions. By integrating CCS flows into CLSSettlement, the service allows for multilateral netting against all other FX transactions, providing substantial liquidity optimization benefits as well as reducing daily funding requirements for clients.
Lisa Danino-Lewis, chief growth officer at CLS, said in a statement: “The growing number of institutions, as well as growing volumes on the platform, underlines the industry’s commitment towards minimizing settlement risk in the FX market.”
Michael Pollak, head of Cross Currency Trading at Barclays, said in a statement: “Through multilateral netting, we can also optimize our liquidity, reduce our funding requirements and remove friction from the market’s infrastructure.”