CLSNet Welcomes BNY Mellon And ING To Bolster FX Transaction Handling
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ING and BNY Mellon have recently joined CLS, a financial market infrastructure firm, strengthening the list of top global banks that are collaborating with the company.
Both banking giants are now members of CLSNet, a service specializing in bilateral payment netting calculations covering over 120 currencies. This partnership underscores the continuous adoption and expansion of CLSNet in the global financial industry. CLSNet announced the listing of the two banks in a press release.
BNY Mellon is known as the biggest custodian bank globally managing assets of more than $41.1 trillion. ING is the largest Dutch bank, with assets exceeding €951 billion.
The Netting Calculation Platform Has Eight Of The World’s Major Banks
The participation of such major financial institutions highlights the importance of CLSNet as a platform for streamlined bilateral payment netting calculations, catering to a broad range of currencies.
The inclusion of ING and BNY Mellon further cements the platform’s position as the number one choice of major global banks seeking efficient financial market infrastructure. This netting calculation platform already features eight of the world’s top banks.
CLSNet works as a centralized platform created to streamline and standardize various post-trade processes. It includes activities such as non-deliverable forwards (NDFs) and same-day trades. The platform achieves this by applying a process of netting, where offsetting payment obligations are merged, leading to a decrease in settlement risk.
Additionally, this netting mechanism boosts operational efficiency, mostly in managing a diverse collection of currency transactions. By providing a unified and centralized system, CLSNet adds to a more efficient and risk-mitigated post-trade environment for financial institutions.
CLSnet Has Seen Impressive Growth
Last month, CLSNet suggested that big changes might happen in the global financial markets. The team was thinking about delaying the instructions for settling currency transactions.
This year, the platform has experienced remarkable growth in both usage and adoption. The average daily value of net calculations has been over $115 billion for the past year. On December 20, CLSNet reached an all-time high with a daily total of $445 billion in net calculations.
According to Robbert Zee, who leads FM Operations at ING, CLSNet helps enhance and standardize post-trade processes worldwide. He mentioned that ING joining is crucial for their plan to lower risks and boost efficiency.
By automating netting through a central platform, players can make currency transactions more efficient and safer, especially for those not covered by the company’s settlement system, CLSSettlement.
In addition, the inclusion of BNY Mellon and ING in CLSNet underscores the platform’s growing influence among major global banks.
With a focus on enhancing FX transaction handling, CLSNet’s centralized approach and record-breaking growth in adoption highlight its increasing importance in streamlining post-trade processes. The participation of industry leaders signifies a positive shift towards standardized and efficient currency transactions.
