Tuesday , March 2 2021

Goldman, Morgan Stanley Go Live With Blue-Powered Blockchain & # 39; CLS

CLS, the currency trading utility owned by the bank, and IBM has gone live with its paying net service based on block blocks after more than two years is being developed .

Goldman Sachs and Morgan Stanley's investment banking horses are the first companies to use the new CLSNet, with six more North American, European and Asian participants, including Bank of China (Hong Kong), committed to join in the coming months, according to CLS and IBM.

Ram Komarraju, managing director of technology at CLS, told CoinDesk that the system was in operation, saying:

"We have matched and confirmed the first transactions and successfully published a net report to counterparties."

Along with the food launch, the IBM Food Trust block, launched in October, and the we.trade trade finance platform, which went live at the end of June, CLSNet is the third blockbox consortium that & Is powered by IBM technology to enter this year's production.

Of course, there is a few distribution technology technology (DLT) projects that are distributed from any stripe to do this.

"With CLSNet now producing with two of the world's largest banks, for a large market function, it's a witness to the continued maturity of blockchain technology and the value that it can achieve in practice," said Marie Wieck, manager general in IBM Blockchain, in a press release.

The launch of CLSNet, he says, represents "the process of producing first blockchain technology in global market production."

Fill gaps

Although not a home name, CLS provides a critical plumbing to foreign exchange markets, or a forex. It was established in 2002, which mitigates the risk of settlement for banks participating in a "payment against payment" service, where two trade parties are completed at the same time.

But its new platform aims to solve current issues in the forex market, such as lack of standardization and automation.

For example, there are currently a limited number of net participants with each other, and even when they often need to manage the process manually, according to IBM and CLS. In addition, many participants are not renting fees for forex trading, instead settling on a gross basis, which reveals them to the risk of settlements and leads to the requirements of superior liquidity, the companies said.

"CLSNet will provide the standardization and automation required for non-CLS fixed transactions," said Adam Josephart, managing director of the fixed income department at Morgan Stanley.

Barry Lo, the general manager of the Bank of China Bank (Hong Kong), is the executive manager of CLSNet specifically "will improve operational efficiency in trade exchanges and pay for non-CLS match funding such as CNH [the offshore version of China’s renminbi], and strengthen our risk management. "

The CLSNet now lives for over 120 fiat funds and is designed to standardize and increase the level of payment net in the foreign exchange market. I've been developed in collaboration with side buying and selling organizations. At the same time, the platform supports compliance with the code of conduct for the foreign exchange markets and the CLS helped develop, and the company noted.

"A standardized and automated payment netting process will lead to better interactive liquidity, lower cost, better operational efficiency and ultimately support business growth," said Alan Marquard, the main strategy and development officer in CLS.

Early examiner

CLS and IBM CLSNet developed on the Floor Hyperledger Fabric block. But CLS has been experimenting with blockchain technology since early 2015, before the Hyperledger consortium started.

Those eventually grew to CLSNet, with Bank of America, Bank of Tokyo, Bank of Tokyo-Mitsubishi UFJ, Citibank, Goldman Sachs, JPMorgan Chase and Morgan Stanley on board when the project was revealed in September 2017.

From startup, CLS worked with IBM on small block solutions. However, in May of this year, the forex trading utility announced a $ 5 million investment in another DLT enterprise R3 vendor.

Yet an R3 platform is not used for the current services that CLS works on, Komarraju told CoinDesk.

"Our investment in R3 does not have any impact on the future development of our products using Hyperledger Fabric, as we do not believe that DLT should be a single network universe," he says, adding:

"We believe the industry will benefit from choice in providers, which is why we have chosen to join us with two key providers, R3 and IBM, in the DLT place."

Meanwhile, CLS and IBM have expanded their co-operation. In this summer, both companies announced a concept of concept for a separate project of the name LedgerConnect, "app store" block of financial block that offers DLT services for know-how-customer processes, screening sanctions , collateral management, post-trading processing and market reconciliation and market derivatives.

Currency trading image through Shutterstock.

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