Foreign Currency

Barclays connects to CLS’s cross currency swaps service

Barclays Bank has gone live on market structure infrastructure group CLS’ Cross Currency Swaps (CCS) service.

The CCS service, which is an extension of CLS’s payment-versus-payment (PvP) settlement service CLSSettlement, mitigates settlement risk for CCS transactions.

Through the integration of CCS flows into CLSSettlement, the offering provides multilateral netting against all other FX transactions, resulting in liquidity optimisation benefits alongside reducing client’s daily funding requirements.

“The adoption of our CCS service by Barclays, one of the world’s premier banking institutions, demonstrates the value and trust placed in our risk mitigation and liquidity management solutions by the industry,” said Lisa Danino-Lewis, chief growth officer at CLS.

“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.”

Read more: Three new additions for CLS’ cross currency swaps service

As the industry looks to further mitigate settlement risk, CLS’s CCS services has grown in activity in recent times. Values of CCS submitted to CLSSettlement were up 48% year-on-year last year.

“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,” said Michael Pollak, head of cross currency trading at Barclays Bank.

“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.”


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