CLS Teams up with Finastra to Deliver Netting Services

​CLS, a financial market infrastructure delivering settlement, processing and data solutions, yesterday announced its strategic partnership with Finastra, an financial software solutions provider, in a bid to offer Finastra clients access to CLSNet, the company's bilateral payment netting calculation service. 

The new partnership addresses increased demand from the buy side for a centralized infrastructure to manage post-trade processes, which is expected to accelerate Finastra's Marketplace strategy and enable its customers to access CLSNet without additional development.

Users will be able to view trades which are expected to settle, confirm trade details with each relevant counterparty as well as make net settlement payment calculations on a per currency basis, thereby removing manual reconciliation netting processes.

At present, a large number of market participants currently manage the bilateral settlement process via email. The collaboration between CLS and Finastra is a significant step in addressing the operational risk associated with these manual processes, in particular between banks and their buy-side clients.

In addition, for CLSNet participants, the collaboration with Finastra will create a greater network effect by enabling a wider group of market participants to benefit from the standardization and automation of post-trade netting processes.

Keith Tippell, Head of Product, CLS, said: “In response to market demand, we are evolving CLSNet to support the partnerships and connectivity options necessary to ensure broad-based adoption and, additionally, exploring new functionality related to emerging market currencies. The partnership with Finastra is an important step in this evolution and a good example of two major FX ecosystem service providers collaborating for the benefit of their customers and the FX market as a whole.”

Neil Macro, Global Head of Sales – Financial Messaging and Services, Finastra added: “We are delighted to partner with CLS on this initiative. Finastra’s Fusion Confirmation Matching Service brings together the world’s largest buy side and sell side FX players. Providing a seamless integration with CLSNet is part of our commitment to deliver complementary marketplace services to our customers.”