Bank of America Goes Live on CLS CCS Settlement Service

CLS has announced that Bank of America has officially gone live on its Cross Currency Swaps (CCS) service, marking another step in the broader adoption of payment-versus-payment (PvP) settlement solutions across the foreign exchange market.

The move brings Bank of America into a network of global banks already using the platform to address settlement risk and streamline post-trade processes as FX trading activity continues to expand worldwide.

Cross currency swaps involve the exchange of principal amounts at both the beginning and end of a transaction, often resulting in large payment obligations between counterparties. Traditionally, these transactions are on a gross bilateral basis, which can create operational burdens, liquidity pressures, and exposure to settlement failures if one side of the transaction does not complete its payment obligations.

Bank of America Goes Live on CLS CCS Settlement Service

CLS said its CCS service, which operates as an extension of CLSSettlement, is designed to mitigate these risks through a PvP settlement mechanism. The structure ensures that both sides of a principal exchange settle simultaneously, reducing counterparty exposure linked to failed payments.

The service can also integrate with OSTTRA MarkitWire’s post-trade processing infrastructure, enabling participants to process CCS flows directly into CLSSettlement. According to the company, this setup allows firms to benefit from multilateral netting across FX transactions, helping optimize liquidity usage and lower funding demands tied to daily settlement activity.

CLS reported that the average daily settled value of CCS transactions submitted to CLSSettlement increased by 87% during 2025, reflecting growing adoption of PvP settlement tools amid heightened regulatory and policymaker attention on settlement risk management.

Lisa Danino-Lewis, Chief Growth Officer at CLS, said the expansion of the CCS service and Bank of America’s participation demonstrate continued progress in reducing FX settlement risk at a time when trading volumes remain elevated.

Carlos Fernandez-Aller, co-head of Global FICC Macro at Bank of America, said the implementation supports the bank’s efforts to reduce unsecured settlement risk while improving operational and liquidity efficiency in cross currency swap activity.

For more broker reviews, visit Broker Reviews.