6.2.2.1 First Level Validations

The first level check will ensure the following:

• The branch is identified as a ‘CLS Participant’
• The sold and bought currencies are identified as ‘CLS currencies’
• The CLS currency details are maintained for the Branch + Bought Currency and Branch + Sold Currency combinations
• The customer of the contract is a CLS participant who is allowed to deal in both the bought and sold CLS currencies
• The value date of the contract should be a working day for both the currencies as per the Currency Holiday Calendar and the CLS Bank Holiday Calendar
• The ‘Exclude From CLS’ option is not selected for the contract.

The following validations are performed for CLS Settlement Instructions:

• The module is ‘FS’.
• The product is a specific FX product.
• The currency is a ‘CLS Currency’.
• The counterparty is a ‘CLS Participant’.

If the first level check fails, the contract will not qualify to be processed as a CLS deal and will be saved as non-CLS (the ‘CLS Eligible’ option will remain unchecked). The system will process the deal with module as ‘FX’.