UBS and FAB go live with FX Global Code compliant CLSNet

Rick Steves

CLS has onboarded First Abu Dhabi Bank (FAB) and UBS on its bilateral payment netting calculation service for over 120 currencies, CLSNet.

The market infrastructure group delivering settlement, processing and data solutions now counts with seven of the top ten global banks among its CLSNet community of global and regional banks.

Deutsche Bank, Mashreq and Standard Chartered have recently committed to using the platform as part of efforts to expand the roster of netting counterparties.

CLSNet has seen a 179% year-on-year increase in the average daily notional of net calculations in H1 2022.

+120 currencies for FX products, including same-day trades and NDFs

CLSNet standardizes and centralizes post-trade processes across the global currency spectrum – and in doing so reduces risk, enhances efficiency and improves liquidity for a growing network of FX market participants.

A centralized platform like CLSNet allows clients, such as UBS and FAB, to access matching and legal confirmation of over 120 currencies for FX products, including same-day trades and NDFs.

The adoption of CLSNet also reinforces FX market participants’ adherence to the FX Global Code, in particular to Principles 35 and 50,1 as all trade instructions sent to CLSNet are automatically validated and matched up to the pre-determined cut-off times between counterparties for each currency.

This means that only matched trade instructions are included in the automated net calculation and provides a single common record of the net payment obligations.

By automating the netting calculation process via a centralized platform, users benefit from greater operational efficiency through substantially enhanced straight-through processing rates as well as increased risk mitigation for currency flows not settling via CLSSettlement.

Single common record of the net payment obligations

Lisa Danino-Lewis, Chief Growth Officer, CLS, commented, “We are delighted that FAB and UBS have gone live on CLSNet. The escalating interest in CLSNet is a testament to its centralized model. Through the expanding global network, market participants will be able to maximize the intraday liquidity, operational efficiency and risk mitigation benefits of the service.”

Anan Samaneh, SVP & Head of FXMM & Control Operations, FAB, said, “CLSNet offers standardization and automation through a centralized platform which will significantly enhance our post-trade process – thereby enhancing operational efficiency, risk mitigation and reduced funding requirements. Participating in CLSNet also supports FAB’s adherence to the best practice settlement risk principles of the FX Global Code.”

Steve Forrest, Global Head FX Operations, UBS, added, “CLSNet will enable us to address our wider post-trade processing needs and automate our bilateral netting activity with fellow participants. Further, as a centralized infrastructure, it not only delivers risk mitigation for participants but also facilitates front office benefits such as liquidity optimization and reduced funding requirements.”

CLS provides settlement services and complementary products for improved risk management across the full FX lifecycle, including processing tools or market intelligence.

  • Read this next

    Retail FX

    Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

    Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

    Retail FX

    Lark Funding reopens to US traders, MyFundedFX picks cTrader

    Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

    Institutional FX

    Cboe FX volume falls to lowest level since summer

    Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

    Retail FX

    ThinkMarkets secures lucrative DFSA license in Dubai

    Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

    Digital Assets

    New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

    Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

    Digital Assets

    Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

    Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

    Digital Assets

    Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

    Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

    Institutional FX

    Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

    Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

    Industry News

    Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

    In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.