Eliminate settlement risk in your FX deals
CLS™ (Continued Linked Settlement) eliminates the risk associated with foreign exchange (FX) settlement across time zones. Settlement of FX transactions requires the exchange of two principal currencies. Through CLS, settlements are automatically funded via your currency accounts as one net payment per currency per settlement day. This is done either as a positive or a negative net position of all settlement payments in the relevant currency.
What is CLS and how does it work
The CLS concept is the banking industry’s response to increased regulatory concern about settlement associated with the growth of FX trading. CLS was originally created for interbank use but is now also available for non-bank Financial Institutions and Corporates. Nordea is Settlement Member of CLS Bank and offers CLS third-party services to financial institutions and large corporates, which settle large FX trades. With Nordea, you can obtain a straight-through processing (STP) flow when settling FX trades in CLS Bank. This is done by using fully integrated solutions that link your treasury management system (TMS) to the CLS system in Nordea.
To support daily back-office activities we also offer you CLS Web Access which provides you with online overview of your CLS trades, search tools and the possibility to extract user-defined reports.
Benefits of CLS include risk reduction, operational efficiency, cost savings, improved visibility on settlement processes and easier regulatory compliance.