CLS

CLS Group operates as a specialized financial market infrastructure, primarily addressing settlement risk in the global foreign exchange (FX) market. Its core product, Continuous Linked Settlement, provides a mechanism for multilateral netting and simultaneous exchange of the two legs of an FX transaction. This unique process aims to eliminate principal risk, enhancing the safety and efficiency of cross-currency payments for its members and the broader financial ecosystem.

Established in July 1997, CLS was founded by a consortium of leading international banks. The initial insight stemmed from a collective recognition of the systemic risk posed by the settlement of foreign exchange transactions, particularly the Herstatt risk where one party delivers its currency but does not receive the counter-currency. The founders sought to mitigate this risk through a standardized and centrally managed settlement process.

Thousands of counterparties within the global FX ecosystem rely on CLS for secure and streamlined currency settlement. The company's vision centers on fostering stability and integrity in the foreign exchange market by continuously evolving its services to meet the demands of an increasingly complex global financial landscape, contributing to a more robust and interconnected world economy.