Finastra partners with CLS to offer payment netting service to customers

By Megha Bhattacharya

Finastra today announced a partnership with CLS in a bid to offer its customers with access to CLS’ bilateral payment netting calculation service, CLSNet. The new collaboration is expected to accelerate Finastra’s Marketplace strategy and enable its customers to access CLSNet without additional development.

Customers will be able to view trades which are expected to settle, confirm trade details with each relevant counterparty as well as make net settlement payment calculations on a per currency basis, thereby removing manual reconciliation netting processes.

Keith Tippell, Global Head of Product, CLS, said, “In response to market demand, we are evolving CLSNet to support the partnerships and connectivity options necessary to ensure broad-based adoption and, additionally, exploring new functionality related to emerging market currencies. The partnership with Finastra is an important step in this evolution and a good example of two major FX ecosystem service providers collaborating for the benefit of their customers and the FX market as a whole.”

CLSNet allows FX participants to net payment amounts directly with counterparties before settling through the correspondent banking system. The service optimises intraday liquidity while aiming to deliver operational efficiency and increased risk mitigation for non-CLS-settled currencies.

Neil Macro, Global Head of Sales – Financial Messaging and Services, Finastra added, “We are delighted to partner with CLS on this initiative. Finastra’s Fusion Confirmation Matching Service brings together the world’s largest buy-side and sell-side FX players. Providing a seamless integration with CLSNet is part of our commitment to deliver complementary marketplace services to our customers.”

Recently, Finastra announced the availability of its next-generation data offering – Fusion Data Cloud. The new offering is expected to help financial institutions enhance customer engagement, increase revenue and digitise processes for efficiency and manage risk. Fusion Data Cloud aims to offer a data ecosystem, actionable insights and connected experiences.