CLS Group facts for kids
Edge Act Corporation | |
Industry | Banking, financial services |
Founded | 2002 |
Headquarters | New York |
Area served
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Worldwide |
CLS (originally Continuous Linked Settlement) is a specialist US financial institution that provides settlement services to its members in the foreign exchange market (FX). Although the forex market is decentralised and has no central exchange or clearing facility, firms that chose to use CLS to settle their FX transactions can mitigate the settlement risk associated with their trades.
CLS does this through the operation of a payment versus payment (PvP) settlement service which mitigates settlement risk for the FX transactions of its settlement members and their customers (third parties).
The service started operating in 2002 as an Edge Act Corporation, a limited purpose bank regulated by the Federal Reserve Bank of New York.
Since it began operations in 2002, CLS has rapidly become the market-standard for foreign exchange settlement. As a result, the Financial Stability Oversight Council (FSOC) officially designated CLS a Systemically Important Financial Market Utility in July 2012.
The single day record for gross-value settlement, set on 19 March 2008, stands at US$10.3 trillion, for 1,113,464 payment instructions. The single day record for gross-volume settlement, set on 28 May 2013, is 1,992,652.
In 2002 CLS was launched with 39 Members and seven currencies. As of November 2015 CLS settles 18 Currencies, has 74 Shareholders, 64 Settlement Members and over 9,000 active Third Party participants.
Members include:
ANZ
Bank of America
Bank of Montreal
Bank of New York Mellon
Barclays
BBVA
BNP Paribas
Canadian Imperial Bank of Commerce
Citigroup
Commerzbank
Commonwealth Bank
Crédit Agricole
Credit Suisse
Danske Bank
Deutsche Bank
Goldman Sachs
HSBC
ING
Intesa Sanpaolo
JP Morgan
KBC
Landesbank Bayern
Lloyds
Mitsubishi UFJ Financial Group
Mizuho Financial Group
Morgan Stanley
National Australia Bank
Natixis
Nomura
Nordea
Northern Trust
Rabobank
Royal Bank of Canada
Royal Bank of Scotland
Santander
Scotiabank
SEB
Société Générale
Standard Chartered
State Street
Sumitomo Mitsui Financial Group
Svenska Handelsbanken
Swedbank
Toronto-Dominion Bank
UBS
UniCredit
Westpac