CLS Completes FX Settlement Infrastructure Move to New Data Center

CLS has completed the migration of its FX settlement infrastructure to a new data center, a key milestone in its multi-year technology upgrade project. The new environment supports nearly 2 million transactions valued at over $9 trillion. The migration aimed to enhance security, flexibility, and operational resilience while meeting future demands.

CLS and Kyndryl stated that the migration involved planning and thorough testing at every stage, given CLS’s critical system infrastructure status. The announcement did not specify the new data center’s architecture, location, cloud provider, or processing times.

The migration preserved the critical payment function, with CLS Settlement using netting to reduce the risk of one party paying while the other cannot deliver. This risk, known as the Herstatt risk, can occur due to differing payment systems and time zones.