Goldman Sachs and Morgan Stanley Go Live with CLS Blockchain Service

US investment banks Goldman Sachs and Morgan Stanley have gone live with CLS’s automated bilateral payment netting service that operates on a blockchain technology platform, according to a story in TheTrade news. The foreign exchange (FX) settlement specialist developed the tool, known as CLSNet, in collaboration with buy- and sell-side market participants, with the goal of standardizing and increasing the levels of payment netting in the FX market for trades that have not been settled through CLS. Many institutions currently net with each other on a regular basis, but the processes often require manual intervention and are not fully scalable. Limited payment netting is also exacerbated by high settlement costs in emerging market currencies, despite their increased relevance for FX firms. Six other financial institutions from North America, Europe and Asia, including the Bank of China in Hong Kong, have also committed to joining CLSNet, alongside several others who will be onboarded onto the platform over the next few months.