CLS DLT-powered offering goes live with Goldman Sachs and Morgan Stanley

US forex exchange (FX) settlement giant, CLS, has announced that CLSNet, a standardised, automated bilateral payment netting service for over 120 currencies operating on a DLT platform, is now live with Goldman Sachs and Morgan Stanley. 

This has been built in conjunction with IBM and runs on the Linux Foundation’s Hyperledger Fabric framework. Six additional participants from North America, Europe and Asia, including Bank of China (Hong Kong), have committed to joining the service, and onboarding of several other market participants is planned in the next few months.

Alan Marquard, Chief Strategy and Development Officer, CLS, says: “This is the first service of its kind to be operated on a DLT platform. Further, this offering demonstrates how we are using our unique, trusted position at the centre of the FX market to solve industry challenges. A standardised and automated payment netting process will lead to improved intraday liquidity, reduced cost, improved operational efficiencies and ultimately support business growth.”

Adam Josephart, Managing Director, Fixed Income Division, Morgan Stanley, comments: “CLSNet will deliver the standardisation and automation needed for non-CLS settled transactions. We are delighted that Morgan Stanley is one of the early adopters of the service.”