Bank of America Goes Live on CLS Cross Currency Swaps Service Amid Record FX Growth

Bank of America went live on CLS's cross currency swaps settlement service, expanding use of payment-versus-payment infrastructure to reduce settlement risk in FX markets. The integration allows the bank to settle currency exchanges simultaneously, eliminating gaps where one counterparty might fulfill obligations while the other fails. Bank of America emphasized liquidity efficiency and counterparty risk reduction as key drivers, with Carlos Fernandez-Aller, co-head of Global FICC Macro, stating the move supports "reducing counterparty risk on cross currency swap initial and final principal exchanges while delivering operational and liquidity efficiencies."

The expansion reflects growing institutional focus on settlement risk as global FX trading accelerates. According to the Bank for International Settlements 2025 Triennial Survey, average daily FX turnover reached approximately $9.6 trillion in April 2025, a 28% increase from 2022. CLS reported that average daily settled value of cross currency swaps in its settlement service increased 87% during 2025, demonstrating broader industry adoption of safer settlement mechanisms.