Wall Street Systems (WSS) is working with the Royal Bank of Scotland (RBS), Banco Bilbao Vizcaya Argentaria (BBV) and several other Continuous Linked Settlement (CLS) banks to implement support functionality for CLS. At RBS and BBVA, the CLS solution will be used to manage the FX trade process, from deal capture to settlement with CLS Bank.
The solution is available either as a standalone CLS module or can be fully integrated with the front and back office modules, as well as the cash management tools of the WSS treasury engine, which both RBS and BBVA already use in their back office FX and money market operations.
The capability to make scheduled payments to CLS Bank has been completed and fully tested; both banks are now working with WSS and CLS Bank to test connectivity via the CLS member API. WSS says initial trials using the CLS member test service have proved successful for both inbound and outbound messages and have confirmed that trades processed by the treasury engine can be automatically transmitted and updated in the CLS system.
RBS’s London office will act as the control branch for the group, Max Boulton, financial markets project manager at the bank, says, “The bulk of the CLS solution has now been implemented into our production systems, and we have already exercised the scheduled payments and pay-in call capability with nostro correspondent agent by making real payments across live systems. In the future, using CLS, we will be able to drastically reduce the number of settlement payments, while expanding the number of transactions – making our whole FX operation a lot slicker.”
BBVA is implementing the solution in its Madrid office, and will be rolled out to support transactions from the bank’s branches in Milan, London and New York. Branch funding capability is included in the solution for BBVA, enabling the head office to fund any branch positions.
Joe Guerrero, CLS product manager at WSS, says, “Both RBS and BBVA are now well advanced in their preparations for the launch of CLS. Once CLS goes live and builds up critical mass – automating the interbank settlement business – it will help to dramatically reduce settlement risk and considerably cut down on payment traffic.”