Fundtech enhances CLS product offerings

Jersey City-based Fundtech has launched two new services to extend its Continuous Linked Settlement (CLS) product range. IOSwaps Manager and a ‘third party’ PayPlus for CLS are aimed at extending the ability of financial institutions to eliminate risk associated with cross-currency foreign exchange transactions and improve straight-through processing.

Unveiled at the annual Society for Worldwide Interbank Financial Telecommunications (Swift) members meeting, Sibos, in Geneva this week, IOSwaps Manager can act as either a stand-alone or integrated service enabling CLS settlement members to automate inside/outside swaps processing. It was developed to help banks reduce their liquidity requirements for CLS settlements. Banks should also face less risk of missing the swap deadline or exceeding limits, resulting in reduced operational costs.

The US payment, settlement and cash management technology provider is currently the largest supplier of CLS services to settlement members, and is seeking to repeat this success with the latest version of PayPlus, the company claimed. The new version of PayPlus was developed to allow third-party members of CLS to manage their own CLS activities, which may involve branches, subsidiaries or corporate customers.

Users with a significant volume of foreign exchange activity, or a client base including foreign exchange customers, will benefit from a heightened level of control and independence over their activities by running their own back office while connecting to settlement members and to Swift, Fundtech claimed.