CLS launches same-day FX settlement service, J.P. Morgan and Goldman Sachs to try it first


CLS launches same-day FX settlement service, J.P. Morgan and Goldman Sachs to try it first

CLS, a market infrastructure group delivering settlement, processing and data solutions, has today launched CLSNow, a bilateral, same-day FX gross payment-versus-payment (PvP) settlement service. J.P. Morgan and Goldman Sachs are reported to be the first banks to go live on the service.

CLSNow enables banks to exchange currency positions with mitigated settlement risk on a near-real-time basis. So far currencies offered include the Canadian dollar, euro, UK pound sterling, and US dollar, however additional currencies will be added soon.

CLSNow mitigates FX settlement risk, enhances liquidity management, and provides balance sheet benefits for banks. Currently, the average daily gross value that is settled in the same-day FX market, outside of CLSSettlement and across all currencies that settle in CLS, is approximately USD300 billion.

Alan Marquard, Chief Strategy and Development Officer, CLS, said:

With traditional sources of intraday liquidity contracting, there is a growing need for a safe, intraday currency settlement service. The launch of CLSNow meets this need, further enhances settlement risk mitigation and is another example of how CLS is working to solve challenges for the FX industry.

Scott Lucas, Head of Intraday Liquidity, J.P. Morgan commented:

Removing risk and improving availability of intraday liquidity are central to providing a best-in-class offering to our clients. The go-live of CLSNow is a significant step for the industry and can positively evolve the same day market by delivering these risk and liquidity benefits. We are delighted to have helped develop, and be a first adopter of, the new service.

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CLS launches same-day FX settlement service, J.P. Morgan and Goldman Sachs to try it first

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