BNY Mellon and ING have joined the list of top global banks that have partnered with financial market infrastructure company CLS. The banking giants have become part of CLSNet, the bilateral payment netting calculation service for over 120 currencies.

BNY Mellon and ING Agree to Join CLSNet Community

BNY Mellon, the world's largest custodian bank managing over $41.1 trillion in assets, and ING, the largest Dutch bank with over €951 billion in assets, are the latest participants to join the growing CLSNet community. Eight of the top top global banks are already members of the service.

"We are delighted that BNY Mellon and ING are joining CLSNet's growing community of users," Lisa Danino-Lewis, the Chief Growth Officer at CLS, commented. "In addition to banks, CLSNet is directly accessible to most market participants, making its benefits widely available to the FX industry."

CLSNet is a centralized platform that standardizes and streamlines post-trade processes, including same-day trades and non-deliverable forwards (NDFs). By netting offsetting payment obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term, the service helps reduce settlement risk and achieve greater operational efficiency across a range of currency transactions.

Jason Vitale, the Head of Global Markets Trading at BNY Mellon, said joining CLSNet "will enable us to provide clients with improvements in intraday liquidity and execution efficiency."

A month ago, CLS predicted that global financial markets might experience a significant change as CLS, a multi-currency settlement system for foreign exchange trades, was contemplating postponing settlement instructions for currency transactions.

Record Year for CLSNet

The platform has seen record growth this year in adoption and usage. The average daily notional value of net calculations has consistently exceeded $115 billion over the last 12 months. On 20 December, CLSNet reached a record daily netted notional amount of $445 billion.

"CLSNet provides the functionality to strengthen and standardize the post-trade processes across the global currency spectrum," said Robbert Zee, the FM Operations Lead at ING. He added that ING's participation "will be integral to our strategy to further improve operational efficiency and reduce risk."

By automating netting on a centralized platform, participants can achieve increased efficiency and risk reduction for currencies not currently settled through CLSSettlement, the company's settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term system.