Finastra Integrates CLSNet for Netting Calculations

FX participants can net payments on CLSNet before settlement with corresponding banks.

Financial market infrastructure provider, CLS announced on Monday its partnership with Finastra, offering Finastra clients access to CLSNet, a bilateral payment netting calculation service.

Finastra is a major fintech company with more than 800 clients, mostly corporates and buy-side institutions. Recently, Bank Leumi UK used its services to upgrade its core banking network.

“We are delighted to partner with CLS on this initiative. Finastra’s Fusion Confirmation Matching Service brings together the world’s largest buy-side and sell-side FX players,” Neil Macro, Finastra’s Global Head of Sales – financial messaging and services, said. “Providing a seamless integration with CLSNet is part of our commitment to deliver complementary marketplace services to our customers.”

Demands from Clients

The partnership came with increased demand among Finastra’s buy-side clients for a centralized infrastructure, managing post-trade processes.

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To offer CLSNet services, Finastra will integrate its Fusion Confirmation Matching Service (CMS) on CLS’s infrastructure. This service, according to CLS, will allow FX clients to view trades that are expected to settle, confirm trade details for individual parties, and calculations of net settlement payments before settling through the banking system.

Other clients of CLSNet include major banking players like Actinver, BNP Paribas, Citibank, and J.P. Morgan.

“In response to market demand, we are evolving CLSNet to support the partnerships and connectivity options necessary to ensure broad-based adoption and, additionally, exploring new functionality related to emerging market currencies,” Keith Tippell, Head of Product at CLS, said.

“The partnership with Finastra is an important step in this evolution and a good example of two major FX ecosystem service providers collaborating for the benefit of their customers and the FX market as a whole.”

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