BNY Mellon Connects to CLSNet Netting Service

BNY Mellon has become the latest to join bilateral payment netting calculation service, CLSNet, according to a story in The Trade news. The platform standardizes and centralized post-trade processes across a range of trade types, including same-day trades and NDFs, which aims to reduce risk and achieve greater operational efficiency for a range of currency flows. As settlement risk in the FX market continues to be a focus, especially in emerging market currencies and other growing segments of the market, participants are looking for ways to mitigate risk effectively via automated post-trade services. CLSNet has experienced record growth this year, with the average daily notional value of net calculations consistently exceeding $115 billion in the last 12 months, and on 20 December 2023 it reached a record daily notional of $445 billion netted.