CLS Group, the market infrastructure that enhances financial stability by providing risk mitigation services to the global FX market, has expanded its offering to enable Members to settle Same-Day US dollar (USD) and Canadian dollar (CAD) trades.

The Americas Same-Day Settlement (SDS) Session has been launched in response to demand from CLS Members and with support from the regulatory community to mitigate the risk of same day FX transactions. These trades had not previously been eligible for CLS Settlement due to the cut-off times in the CLS main Settlement Session. SDS is run as an additional service to CLS Main Settlement Session with a unique Operational Timeline.

USD/CAD was selected as the first currency pair for implementation because same-day trades represent a significant component of the USD/CAD market and the two currencies share a time zone. CLS is actively considering other currencies for expansion of the service, with the Mexican peso targeted for inclusion in the Americas SDS Session. Initially there will be 17 participating Member banks using the service, with nine of these live from launch.

David Puth, Chief Executive Officer of CLS commented: “We have seen significant demand from our Member banks for a service that mitigates settlement risk for same-day FX transactions. By establishing an additional service that captures payment instructions submitted after customary CLS cut-off times, we are continuing to deliver on our mission to enhance financial stability by providing risk mitigation services to the global FX market. SDS is a major step forward in enhancing the risk mitigation, liquidity, operational and IT efficiencies delivered by CLS.”