I’m not sure how much of a market remains, but CLS and the Depository Trust & Clearing Corporation (DTCC) have successfully launched a settlement service for the FX transactions generated as a result of OTC credit derivatives transactions.
The service is provided through the DTCC’s Trade Information Warehouse. In its first quarterly central settlement cycle service on December 20, 2007, the amount of trading obligations requiring financial settlement was reduced by 98%, from $14.3 billion gross to $288 million net. Gross settlements by the 14 participating OTC derivatives dealers were consolidated from 340,000 to 123 net settlements. Payments were made in five currencies: US dollars, euros, yen, sterling and Swiss francs
The DTCC’s warehouse generates bilaterally netted payment instructions and sends them to CLS for settlement. CLS says it will add to the number of currencies in the service covers in due course.