Three settlement members, including Barclays Bank and Danske Bank, have enrolled in CLS’s cross currency swaps (CCS) settlement service.

They are joining a growing community of settlement members on the service, including some of the world’s largest banks. The service has witnessed continued growth in recent months, with a 38% year-on-year increase in the values of CCS submitted to CLSSettlement (H1 2023).

The CCS service is an extension of CLS’s unique payment-versus-payment (PvP) settlement service, CLSSettlement. It allows settlement members to send their CCS into CLSSettlement for settlement. In addition to mitigating settlement risk, the CCS flows are multilaterally netted against all other FX transactions in CLSSettlement, resulting in a significant reduction in daily funding requirements for clients and considerable liquidity optimization benefits across the industry.

Furthermore, increasing CCS volumes to CLSSettlement bolsters the efforts of policymakers and regulators to promote widespread adoption of PvP as a means of reducing settlement risk.

“We are delighted to welcome the latest additions to our CCS service,” said Lisa Danino-Lewis, Chief Growth Officer, CLS. “Their decision to join our platform is a testament to the risk mitigation and liquidity and operational efficiencies provided by the service, and it underscores our clients’ continued commitment to further mitigate settlement risk.”

Jeppe Østerby Thomsen, Global Head of STIR Trading, Danske Bank added: “As a leading bank in the Scandinavian region, it is important for Danske Bank to have access to post-trade solutions that deliver risk mitigation and greater cost efficiencies. We are confident that CLS’s CCS service will help us achieve greater efficiency and transparency in our FX operations.”