HSBC Participates CLS and IHS Markit Cross-Currency Swaps Service

CLS Group, a US-based foreign exchange settlement provider, announced that HSBC has become the latest financial firm to join the cross-currency swaps service of CLS and IHS Markit.

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According to an official announcement, there are now nine settlement members live on the service, including some of the world's largest banks.

The cross-currency swaps service is an extension of CLS’s innovative PvP settlement service and uses the MarkitSERV trade confirmation platform to allow CLSSettlement members to send their cross-currency swaps into CLSSettlement for settlement.

The cross-currency swap flows are multilaterally netted against all other FX transactions in CLSSettlement, resulting in a significant reduction in daily funding requirements for clients and considerable liquidity optimization benefits across the industry.

“We are delighted to welcome HSBC as the latest participant to join our cross-currency swaps service. As more settlement members join the service, they will benefit from significant operational and funding efficiencies,”said Lisa Danino-Lewis, Global Head of Sales at CLS.”CLS has long advocated for greater PvP adoption to mitigate FX settlement risk, and by increasing cross-currency swap flows to CLSSettlement, HSBC’s participation will help to achieve that.”

“The cross-currency swaps settlement service is a good example of how service providers can work together to create a more efficient FX settlement system. The addition of HSBC to the community of global financial institutions connected by the MarkitSERV network for cross-currency swap settlement shows that the industry supports such collaborations, while at the same time reaping cost benefits and mitigating risk,”Peter Altero, Global Head of Rates Business Development at IHS Markit added.