This publicly available website provides information on Protocols published and administered by CLS Bank International.  The purpose of these Protocols is to offer market participants an efficient way to address issues relating to standards and/or best practices surrounding post-trade processes where related Instructions are submitted to the CLS System for Settlement services in CLS Bank.  Such standards and/or best practices have been developed and agreed generally by the industry.

Participation in the Protocols is open to all market participants, i.e., Members and non-Members of CLS Bank.  It should be noted that there is no adherence fee required for market participants wishing to participate in these Protocols.

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FX Protocol

Background
The purpose of the FX Protocol is to offer market participants an efficient way to address legal and operational issues that arise in connection with FX Transactions whose related FX Instructions are submitted to the CLS System for Settlement services in CLS Bank.  Specifically:

• Confirmation of Economic Terms (Legal) – to enable parties with FX Instructions related to their underlying FX Transaction submitted to the CLS System for Settlement in CLS Bank to treat FX Instructions that have been matched in the CLS System as a confirmation of each economic term of the underlying FX Transaction so matched.
• Adoption of Stated Industry Best Practice (Operational) – to enable parties to notify other parties of their respective current positions, as an operational matter, on the stated industry best practice of not requiring the receipt of a separate confirmation of an FX Transaction if the related FX Instructions have been matched in the CLS System (the “Best Practice”).  Unlike the confirmation of economic terms described above, this is an optional, not mandatory, provision in the FX Protocol.

Documentation Relating to FX Protocol  

• List of Adhering Parties - Excel version (December  07, 2007)
  The CLS Bank Protocol, FAQs and, if applicable, the relevant Letters should be reviewed carefully by your institution before acting on any information summarized in this file. (In particular, it should be well understood that, as indicated in the FAQs, an institution's adherence to the FX Protocol alone does not provide any indication of whether it has adopted the Best Practice of no longer requiring the receipt of separate confirmations.)
• Adherence Letters (executed) - PDF copies (November 02, 2007)
  This will contain the conformed copies and will be updated regularly.
• Adoption of Best Practice Letters; Adoption of Best Practice Supplemental Letters (executed) – PDF copies (December 07, 2007)
  This will contain the conformed copies and will be updated regularly.
• CLS Bank FX Protocol
• Frequently Asked Questions (FAQs)
• Procedures for Adherence and Adoption of Best Practice
• Form of Adherence Letter
  MS word versions of Exhibits 1A, 1B and 1C to the FX Protocol:
  • for Single Adherence Party: Non-Member
  • for Multiple Adhering Parties: Affiliates
  • for Investment or Asset Manager
• Form of Adoption of Best Practice Letter
  MS word versions of Exhibits 2A and 2B to the FX Protocol
  • for Member or Non-Member and Affiliates
  • for Investment or Asset Manager
• Form of Adoption of Best Practice Supplemental Letter
  MS word versions of Exhibits 3A and 3B to the FX Protocol
  • for Member or Non-Member and Affiliates
  • for Investment or Asset Manager
• Form of Counterparty Letter
  MS word document to assist you in encouraging your FX
  counterparties to participate in the FX Protocol.
  
  

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NDF Protocol

[currently under development]