5 CLS for FX Pre-Settlements

This topic provides the overview of CLS for FX Pre-Settlements.

OBTR to support the CLS scheme for FX transactions as a:

• Third Party Participant
• The members of the CLS Bank, referred to as the ‘Settlement Members’, submit the deals to the CLS Bank which in turn will match the deals and settle the same by debiting/crediting their accounts in accordance with their instructions.

Whereas a third party participant, submit the deals to the CLS Bank via their Settlement members. The Pre- Settlement Manager resolves the CLS instructions for a FX deal based on the Branch, Customer, Customer Settlement Instructions, Currency, Product, CLS Cut off and CLS holiday maintenances.

Pre- Settlement Manager also generates MT 300 and MT 304 SWIFT confirmations and STP’es the contracts to Product Processor.

Product Processor updates the CLS status on each FX deal interfacing with the external system, Supports the processing involved in the settlement of CLS transactions.

This topic has the following sub-topics:

• Maintaining CLS preferences
  This topic describes the overview of CLS Preferences.
• CLS Eligibility check at the Pre- Settlement Manager
  This topic describes the overview of CLS Eligibility check at the Pre- Settlement Manager.
• Processing a CLS deal
  This topic describes the details to process a CLS deal.
• Generation of the FS Confirmation Message for CLS deals (MT304)
  This topic describes the generation of confirmation message for CLS deals.
• Sample MT304 generated message
  This topic describes the sample MT304 generated message.