Barclays Bank has gone live on CLS’s cross currency swaps (CCS) service.
The CCS service, an extension of the CLSSettlement payment-versus-payment settlement solution, mitigates settlement risk for CCS transactions.
Integrating CCS flows into CLSSettlement facilitates multilateral netting against all other FX transactions, the company says, providing liquidity optimisation and reducing daily funding requirements.
The CCS service has seen considerable activity over the past year, as a result of increased efforts to mitigate settlement risk through public policy. CLS reports a 48% increase in the values of CCS submitted to CLSSettlement, which it states demonstrates industry support for the service.
Lisa Danino-Lewis, chief growth officer at CLS, commented: “Barclays Bank going live on our CCS service is a positive step in our continual work toward making the global FX market more resilient and efficient.
“The adoption of our CCS service by Barclays demonstrates the value and trust placed in our risk mitigation and liquidity management solutions by the industry. The growing number of institutions, as well as growing volumes on the platform, underlines the industry’s commitment towards minimising settlement risk in the FX market.”
Michael Pollak, head of cross currency trading at Barclays Bank PLC, added: “As markets continue to navigate an uncertain period, being able to mitigate FX settlement risk via CLS’s CCS service is a vital part of our risk management practices. Through multilateral netting, we can also optimise our liquidity, reduce our funding requirements and remove friction from the market’s infrastructure. We look forward to the continued benefits the service will bring to our operations and the wider industry.”
©Markets Media Europe 2024
