e-Forex July 22

CLS onboards three more banks to CLSNet
CLS has announced that Deutsche
Bank, Mashreq and Standard Chartered
are at various stages of onboarding to
CLSNet, a standardized, automated
bilateral payment netting calculation
service for approximately 120
currencies. They will join the growing
CLSNet community of global and
regional banks, which includes seven
of the top ten global banks. CLSNet
standardizes and centralizes post-trade
processes across the global currency
spectrum and in doing so reduces
risk, enhances efficiency and improves
liquidity for a growing network of FX
market participants. Using CLSNet also
helps FX market participants adhere
to the FX Global Code, the industry’s
global principles of good practice for
the FX market. In particular, using the
service supports adherence to Principles
35 and 50, as all trade instructions sent
to CLSNet are validated and matched
up to the pre-determined cut-off
times between counterparties for each
currency. This ensures that only matched
trade instructions are included in the
automated net calculation and that
there is a single common record of the
net payment obligations. By automating
the netting process via a centralized
platform, users benefit from greater
operational efficiency and increased risk
mitigation for currencies that are not
currently eligible for CLSSettlement. Lisa
Danino-Lewis, Chief Growth Officer,
CLS said: “The addition of Deutsche
Bank, Mashreq and Standard Chartered
demonstrates the appeal of CLSNet
to all market participants exploring
ways to mitigate settlement risk,
reduce operational costs and optimize
liquidity for their post-trade FX trading
processes. Given the sharp focus on
settlement risk mitigation across the
industry, CLS is collaborating with
market participants to further evolve
CLSNet and to facilitate adoption for a
wide range of participants.”
Lisa Danino-Lewis
NEWS
Societe Generale – FORGE partners with METACO
Societe Generale – FORGE a fully
integrated subsidiary of Societe
Generale, providing issuers and
investors with end-to-end services to
issue, invest and manage digital-native
security tokens registered on public
blockchains, has selected METACO,
a market-leading provider of digital
asset management technology and
infrastructure, to orchestrate its digital
asset custody operations.
to institutional clients under a native
security token format on Ethereum
and Tezos with full banking level safety
and regulatory compliance.
The partnership enables SG – FORGE
to continue setting the agenda on
the integration of security tokens
into traditional finance, and leverage
METACO’s bank-grade digital
asset custody and orchestration
platform, Harmonize, to further expand
its offering at scale. These developments
are taking place within a larger
context marked by the acceleration of
market digitalization using blockchain
technology, notably through the
forthcoming implementation of the EU
Pilot Regime and which will permit the
processing of security tokens through
market infrastructures in compatibility
with applicable EU regulations.
Societe Generale is a pioneer in the
Digital Ledger Technology space, with
innovation sitting at the heart of the
group’s strategic priorities. Since 2019,
Societe Generale and its subsidiary
SG – FORGE structured several native
security tokens issuances deployed
on blockchain for their clients such as
the European Investment Bank’s (EIB)
€100 million digital bond issued in
2021. Societe Generale is now offering
a range of capital market products
10 JULY 2022 e-FOREX