LCH goes live on redesigned CLSClearedFX service
22 July 2025 US
Image: john/stock.adobe.com
Financial market infrastructure group CLS has redesigned its CLSClearedFX service, with LCH ForexClear as the first central counterparty (CCPs) to go live on the platform.
CLSClearedFX is a payment-versus-payment settlement service that allows CCPs and their clearing members to mitigate settlement risk when settling cleared foreign exchange and derivative trades.
The redesigned service uses the existing CLSSettlement platform, enabling CCPs to connect and submit bilateral settlement instructions on behalf of their clearing members, integrating their flows into the main CLSSettlement session.
Andrew Cooper, chief services officer, CLS says: 鈥淥ur redesigned service offering reflects the broader trend of financial institutions focusing on best practice in mitigating FX settlement risk and increasing efficiencies associated with centrally cleared trades.
鈥淭he new service demonstrates benefits we can offer to the wider FX marketplace by leveraging our unique position as a financial market infrastructure and collaborating with established service providers that share the same client base.鈥�
This integration offers improved operational efficiencies and greater liquidity benefits through a consolidated settlement model, and provides a resilient settlement model with robust failure management processes, the firm adds.
LCH ForexClear has now transitioned to the redesigned CLSClearedFX service, integrating settlements of cleared deliverable FX contracts into the main CLSSettlement session.
By joining this enhanced service, LCH ForexClear can eliminate the need for separate workflows and bifurcated funding, thereby reducing the costs associated with settling cleared trades, according to CLS.
Andrew Batchelor, head of ForexClear at LCH adds: 鈥淔orexClear and CLS operating under the new redesigned service, will be instrumental in continuing to provide more efficient risk management in the global FX market.鈥�
CLSClearedFX is a payment-versus-payment settlement service that allows CCPs and their clearing members to mitigate settlement risk when settling cleared foreign exchange and derivative trades.
The redesigned service uses the existing CLSSettlement platform, enabling CCPs to connect and submit bilateral settlement instructions on behalf of their clearing members, integrating their flows into the main CLSSettlement session.
Andrew Cooper, chief services officer, CLS says: 鈥淥ur redesigned service offering reflects the broader trend of financial institutions focusing on best practice in mitigating FX settlement risk and increasing efficiencies associated with centrally cleared trades.
鈥淭he new service demonstrates benefits we can offer to the wider FX marketplace by leveraging our unique position as a financial market infrastructure and collaborating with established service providers that share the same client base.鈥�
This integration offers improved operational efficiencies and greater liquidity benefits through a consolidated settlement model, and provides a resilient settlement model with robust failure management processes, the firm adds.
LCH ForexClear has now transitioned to the redesigned CLSClearedFX service, integrating settlements of cleared deliverable FX contracts into the main CLSSettlement session.
By joining this enhanced service, LCH ForexClear can eliminate the need for separate workflows and bifurcated funding, thereby reducing the costs associated with settling cleared trades, according to CLS.
Andrew Batchelor, head of ForexClear at LCH adds: 鈥淔orexClear and CLS operating under the new redesigned service, will be instrumental in continuing to provide more efficient risk management in the global FX market.鈥�
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