CLS has launched CLSNow, a bilateral, same-day FX gross payment-versus-payment (PvP) settlement service. J.P. Morgan and Goldman Sachs are the first banks to go live on the service. CLSNow enables banks to exchange currency positions with mitigated settlement risk on a near-real-time basis. Currencies offered include the Canadian dollar, euro, UK pound sterling, and US dollar. Additional currencies will be added over time. The service mitigates FX settlement risk, enhances liquidity management, and provides balance sheet benefits for banks.
Alan Marquard, Chief Strategy and Development Officer, CLS, said, “With traditional sources of intraday liquidity contracting, there is a growing need for a safe, intraday currency settlement service. The launch of CLSNow meets this need, further enhances settlement risk mitigation and is another example of how CLS is working to solve challenges for the FX industry.”