CLS Group has
completed its project to upgrade its settlement members to a new member gateway
and market infrastructure (MI) channel.
CLS’s settlement members include 66 of the world’s largest financial
institutions, which are direct participants in CLS. Over 21,000 third-party clients around the
world also access CLS’s services indirectly through settlement members.
The group says that it worked with each of its settlement members, as well as Swift,
to build and integrate a new member gateway into each bank’s core architecture.
gateway is based on international market standards, including Swift ISO
standards, and replaces the former proprietary gateway developed by CLS.
The new gateway is designed to enable settlement members to connect to CLS
using ISO 20022 based XML messages and Swift infrastructure via a browser-based
CLS GUI, rather than through individual proprietary servers.
that it also worked with Swift to develop 13 new messages to support settlement
processing of FX trades, providing settlement members with enhanced efficiency,
improved security and process standardisation.
David Puth, CEO of CLS, says, “Maintaining a robust system is vital for us at
CLS due to our critical role in mitigating settlement risk in the global FX
market. As part of our ongoing program of system and technology upgrades to our
services and infrastructure, we undertook a thorough review of the existing
system. We then worked closely with our settlement members and technology
partners to develop a new member gateway that would meet the demands of the
global FX community today and in the future.”
John Hagon, head of operations of CLS, adds: “The new member gateway and market
infrastructure channel is a scalable solution that offers greater flexibility
and provides the performance and capacity required in a market environment
driven by continuously evolving FX trading demands and growth. It will enhance
connectivity with our clients while also delivering financial savings to them
over the long-term.”
Denise Sommerville, managing director global operations, Morgan Stanley, says,
“We recognise the scale of technological change and transformation of the
underlying architecture embedded within the member gateway and applaud CLS’s
success in introducing this cutting-edge technology into the post-trade
latest international technical standards, including standardised access to Swift
ISO 20022 messaging, will reduce complexity and, in addition, simplify access
and communication paths with international counterparties.”