CLS Post-trade FX Blockchain Solution Is Adopted By Asset Managers
Now offering a service for negotiations, based on blockchain technology, CLS is managing to get rid of the image of being a traditional settlement.
CLS Group made the official announcement on July 2nd of its new post-trade tracking and reporting tool, CLSTradeMonitor. Now enabling the expertise in risk mitigation and operational services provided to Forex (FX) institutions to be successfully implemented.
The first to adopt the Distributed Ledger Technology (DLT)-based product, or blockchain, are asset managers Mesirow Financial and Mountain Pacific Advisors, LLC.
From now on, CLS will no longer be counted among the traditional providers of settlement services. Technologically, most of the products that CLS had upgraded in the past were improvements to existing services, just to make the supply more efficient.
The company was formed in 2002 with the aim of reducing FX settlement risks. They have recently sought to promote themselves as a provider of innovative products, so they are including post-trade risk management, aggregation and clearing solutions.
What Is CLSTradeMonitor?
CLSTradeMonitor is a post-trade monitoring and reporting tool. It provides a real-time consolidated view of the matching status and confirmation of all negotiation instructions sent to CLSSettlement and CLSNet. It is based on a bilateral payment clearing solution to support non-settlement operations in CLSSettlement built on a DLT platform.
CLS Group said the new additions will help participating institutions boost process efficiency, such as optimizing intraday liquidity. This allows real-time knowledge of currency and counterparty exposures and reduces operational and credit risk.
The launch of CLSTradeMonitor comes at the same time as the company has launched its new blockchain-based investment business: R3. This other implementation of CLS Group, based in New York, aims to provide blockchain solutions to the financial services industry.
The company is committed to using a position of confidence at the heart of the FX market, as well as all its experience in technology. In order to create standardized solutions that solve common problems faced by currency market participants.
CLSTradeMonitor is designed to help the general market, including banks, enterprises and asset managers, leverage CLSSettlement and CLSNet.
“Mesirow Financial continuously looks for ways to enhance its operational efficiency and minimize risks for our clients, and CLSTradeMonitor meets both of these objectives. CLSTradeMonitor offers a comprehensive view of the status of our currency trades, helping us to more effectively manage settlement risk. Implementing CLSTradeMonitor further strengthens Mesirow Financial’s commitment to reduce risks and costs for our clients.” said Joseph Hoffman, CEO of Mesirow Financial Currency Management.