Barclays Bank Taps CLS for Cross-Currency Swaps Service

CLS, a financial market infrastructure group delivering settlement, processing and data solutions, today announced that Barclays Bank has officially gone live on its Cross Currency Swaps (CCS) service.

The CCS service - an extension of CLS's unique payment-versus-payment (PvP) settlement service, CLSSettlement - mitigates settlement risk for CCS transactions. By integrating CCS flows into CLSSettlement, the service allows for multilateral netting against all other FX transactions, providing substantial liquidity optimization benefits as well as reducing daily funding requirements for clients.

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, 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. The growing number of institutions, as well as growing volumes on the platform, underlines the industry's commitment towards minimizing settlement risk in the FX market."

Michael Pollak, Head of Cross Currency Trading, Barclays Bank PLC commented, "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 optimize 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."

(Source: Finextra)