Integrated CLS services for all types of FX transactions.
As the Continuous Linked Settlement (CLS) system for foreign exchange (FX) settlement is actively extending the coverage of its risk elimination service to include more participants, more currencies and more FX instruments, banks are no longer just looking to manage the risk on existing FX transactions but are also seeking to capitalize on opportunities presented by this rapidly expanding universe.
D+H’s integrated CLS services solution provides banks with a complete set of integrated settlement services for FX transactions, derivatives settlement, internal netting and non-CLS currencies. The solution captures and processes FX transaction messages according to CLS rules and operating procedures, then distributes them to all relevant CLS settlement counterparties. It provides banks with the capability to monitor their CLS activities daily, matching and reconciling ‘pay-in’ and ‘pay-out’ schedules, assessing credit in real-time and feeding data to internal bank systems and third parties automatically, for the final settlement of FX trades.
The automated capture, processing and distribution of FX transaction messages frees up resources and ultimately leads to lower operating costs in this highly competitive market segment. Cancellations, amendments and unmatched trades or transactions are handled automatically, freeing staff to focus on exceptions rather than monitoring every instance. An intuitive browser-based graphical user interface (GUI) is easy to use and significantly reduces training/retraining time, as well as helping to minimize operator error.
Automation of the FX settlement process not only lowers operating costs but also speeds up settlement processes. Firms are thus well-placed to increase transaction volumes, numbers of currencies handled and/or the amount of FX instruments in which they are dealing in order to scale up their business and achieve future business growth.
The provision of liquidity reports, credit control, limit management and overall liquidity management functionality helps to ensure that the bank’s risk is monitored, measured and controlled. A wide range of security features, processing controls and fault-tolerant operations will meet every audit and access control required by the bank.