The custodian hopes to achieve risk mitigation, liquidity optimization, and operational efficiencies for its FX needs.
Global custodian BNY has gone live on CLSNet, a bilateral payment netting calculation service, in an effort to “optimize and safeguard” FX operations against settlement risk, officials say.
CLSNet is part of CLS, a settlement, processing, and data solutions provider for the foreign exchange (FX) industry.
“CLSNet standardizes and automates post-trade matching and netting processes for over 120 currencies. BNY will leverage CLSNet to support risk mitigation, liquidity optimization, and operational efficiencies for currency flows outside of CLSSettlement, including emerging market and developing economy (EMDE) currencies and same-day trades,” according to the announcement.
Going live on CLSNet reflects the firm’s “commitment to helping our clients access markets more efficiently,” says Jason Vitale, global head of execution services at BNY, in a prepared statement.
BNY on CLSNet “is a welcome addition to our network and marks another significant step in strengthening post-trade standards across the FX market,” says Lisa Danino-Lewis, chief growth officer at CLS, in a statement. “As adoption of our service continues to grow, the value of the network increases, enhancing operational resilience and efficiency across the FX industry.”
Officials say CLSNet had “a significant rise in adoption in 2025, recording an average daily netted value1 of USD177 billion over the past 12 months, up 9 percent year-on-year. The CLSNet community now includes the top 12 global banks and is available to regional banks, funds, corporates and non-bank financial institutions.”
Settlement risk in FX markets “remains high on policymakers’ agendas, particularly as volume increases in EMDE currencies, demand continues to grow among FX market participants for efficient ways to mitigate risk through automated post-trade services such as CLSNet,” officials say. “The service reduces payments exposed to settlement risk by centralizing, standardizing and automating the netting calculation process, and consequently helps participants align with the best practices outlined in Principle 35 of the FX Global Code.”
As of March 31, 2026, BNY oversees $59.4 trillion in assets under custody and/or administration and $2.1 trillion in assets under management, officials say.
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