Wall Street & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Trading Technology

09:55 AM
Connect Directly

FXall Joins CLS Bank to Mitigate Settlement Risk

FXall's Settlement Center will automatically recognize CLS-eligible trades and support CLS matching, so that CLS mismatches can be identified.

FXall, the electronic foreign exchange platform, has joined CLS Bank, the global industry standard for FX settlement services, as a registered vendor. The partnership allows for FXall clients to use an integrated solution for processing CLS settled trades that increases post-trade efficiencies and mitigates settlement risk across FXall's diverse client base.

Settlement Center, FXall's automated transaction processing and settlement solution, automatically recognizes CLS-eligible trades and seamlessly sends member notifications using standardized SWIFT MT300 and MT304 messaging formats to CLS Member and CLS 3rd Party banks for final CLS processing.

Settlement Center now supports CLS trade matching for clients and counterparties so that CLS mismatches can be identified and communicated to clients, reducing settlement error. Settlement Center also facilitates CLS trade amendment processing, thereby enforcing CLS eligibility rules.

CLS was created by over 60 of the world's leading financial institutions by linking multiple real-time gross settlement systems through CLS Bank. CLS eliminates FX settlement risk through simultaneous and irrevocable settlement of both legs of a transaction, regardless of geographies or time zones, the release stated.

In a statement, FXall CEO Phil Weisberg, said: "As the regulatory environment surrounding the FX market continues to evolve FXall remains committed to providing clients with innovative tools allowing them to better manage operational risk and compliance procedures. CLS provides settlement risk elimination at a time of ever growing volumes in the FX market. Weisberg added, " Combined with FXall's Settlement Technology suite, our active management with CLS provides our clients with improved management and control of FX related risk to ensure the seamless processing of trades."

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

Register for Wall Street & Technology Newsletters
Exclusive: Inside the GETCO Execution Services Trading Floor
Exclusive: Inside the GETCO Execution Services Trading Floor
Advanced Trading takes you on an exclusive tour of the New York trading floor of GETCO Execution Services, the solutions arm of GETCO.