Foreign exchange settlement services provider CLS is onboarding Deutsche Bank, Mashreq and Standard Chartered to CLSNet, an automated bilateral payment netting calculation service for approximately 120 currencies.

CLSNet standardizes and centralizes post-trade processes across the global currency spectrum, thereby reducing risk, enhancing efficiency and improving liquidity for a growing network of FX market participants.

The service also helps market players adhere to the FX Global Code, a set of good-practice principles for the industry, CLS says. In particular, it supports adherence to Principles 35 and 50, as all trade instructions sent to CLSNet are validated and matched up to the pre-determined cut-off times between counterparties for each currency. This ensures that only matched trade instructions are included in the automated net calculation and that there is a single common record of the net payment obligations.

Lisa Danino-Lewis, CLS chief growth officer, says: “The addition of Deutsche Bank, Mashreq and Standard Chartered demonstrates the appeal of CLSNet to all market participants exploring ways to mitigate settlement risk, reduce operational costs and optimize liquidity for their post-trade FX trading processes. Given the sharp focus on settlement risk mitigation across the industry, CLS is collaborating with market participants to further evolve CLSNet and to facilitate adoption for a wide range of participants.”