HSBC Signs Up to CLS and IHS Markit Cross-Currency Swaps Service

HSBC has joined the cross-currency swap service offered by IHS Markit and the CLS FX settlement platform, CLSSettlement. According to The TRADE news, the service combines CLS’s payment-versus-payment settlement with IHS Markit’s trade confirmation system, MarkitSERV, allowing members to send cross-currency swaps into CLSSettlement for settlement. Cross-currency swap flows are then multilaterally netted against all other FX transactions in CLSSettlement for liquidity optimisation. IHS Markit and CLS said increasing the flow of cross-currency swaps to the CLSSettlement service was in response to industry calls to increase payment-versus-payment settlement to mitigate risk.