LSEG FX
Settlement Center

Settlement Center
Post-trade efficiency within a single solution
Settlement Center allows you to maximise straightthrough processing (STP) post trade, simplify settlement
operations and reduce costs with a venue-neutralsolution. It works for trades executed on both LSEG FX
and other venues.
Settlement Center is an automated post-trade processing
platform, connecting clients to a network of the largest
banks, liquidity providers, custodian banks, CLS settlement
members and prime brokers. Settlement Center generates
confirmation messages and matches trades. It also
determines settlement preferences and manages complex
settlement instructions for spot, forward, swap, FX options,NDF and commodities transactions.

Benefits− Tighten your operational and internal controls for betterrisk management and compliance. This is achieved
through the separation of duties, with full support formaker-checker rules and permission-based roles− Improve processing performance with real-time
information and a comprehensive audit trail− Maximise straight-through processing, simplify yoursettlement operations and reduce costs− Minimise settlement risk with full CLS compatibility

How does it work
Buy-side client

Liquidity provider1) Trade execution

BANK
2) Trades
uploaded
via FTP or
imported tothe SC GUI

3) Exchange SWIFT
confirmation messages(MT300, MT305,MT320 and MT600)

6) Send FTP updates tothe client’s TMS/OMS(optional)

Direct feed fromthe FXall trading
application4a) Send SWIFT FX trade (MT304) andnet payment instructions (MT202/210)
on the client’s behalf (optional)

5) Use the GUI to monitor trades andapprove (net trades/split payments)4b) Send copies of MT300 and MT304
messages to interested parties
on the client’s behalf (optional)

BANK
Client’s custodian bank/CLS settlement member− Delivers secure messages to the correspondent,
custodian, treasury and counterparty banks,
utilising the SWIFT communication network− Identifies the best settlement path, automaticallysorting CLS-eligible trades from those requiring
net or individual settlement− Automates settlement netting with counterparties
and provides access to SWIFT advice messages− Supports FX spot, forward, swap, option, NDF
and commodities transactions− Enhanced GUI and SWIFT message formats tosupport additional regulatory information− Delivers third-party notifications in multiple
formats, including SWIFT, XML and CSV

SETTLEMENTCENTER5) Use the GUI to monitor trades and perform
actions (net trades/split payments)

Features

Client’s interested parties(fund accountants, outsourcing vendors)− Integrates with FXall® for a complete,secure end-to-end execution and settlement
workflow solution

Streamline and accelerate your access toclearing FX OTC with LCH connectivity
Buy-side institutions are assessing the affect andweighing the benefits of FX clearing following theimplementation of Phase 5 and Phase 6 of theUncleared Margin Rules (UMR) in September 2021and September 2022 respectively.

LSEG FX
Settlement CenterWith the new connectivity to LCH ForexClear
through Settlement Center, FXall institutional
traders are able to determine which of theirtrades get cleared on a post-trade basis,for example, based on the liquidity provider,currency pair, or account they are trading for.

1) Trade execution occurs

6) Status
updatesLiquidity
providerFXall

Buy-side2a) Trade notification issent to Settlement Center

2a) Trade notification issent to Settlement CenterSettlementCenterBenefits of a cleared workflow− Counterparty credit risk reduction3) Client trade is sent

− Margin efficiencies5a) Status updates2b) Trade notification
sent to Markit− Operational risk reduction

IHS Markit− Capital efficiency opportunities

5b) Status updates4) Submissions and updates

LCH5c) Status updates

About LSEG FXLSEG FX offers the world’s leading independent source of trusted FX market insight, interbank and dealer-to-client electronic trading
venues, workflow management, and post-trade and regulatory support for both sell-side and buy-side market participants.

The LSEG FX portfolio includes:FXall

Conversational Dealing

Dealer-to-client trading and workflow solutions for more than
2,300 institutions worldwide, including asset management firms,banks, broker-dealers, corporations and hedge funds, withliquidity from more than 200 bank and non-bank market makers.

Global professional trading community, including more than 4,000
organisations and 14,000 users in more than 120 countries.

Workspace
Pre-trade analytics, news, pricing and other expert insight to help
inform trading strategies and decisions. Workspace provides accessto indicative market rates, currency indices and FX benchmarks.

Matching
Anonymous central limit order book for spot and FX swaps
trading for the dealer-to-dealer community, with over 1,000
subscribers and spot matching in over 80 currency pairs.

Advanced Dealing is a technical and functional enhancement toour already-popular Conversational Dealing. Furthermore, it is a
key strategic element of our FX strategy and brings together theMessenger and Dealing communities to deliver a collaborative
trading workflow.

Compliance Archive
Reconstruct, supervise and analyse your message and tradeactivity in an efficient and compliant way, in one unifying portal.

Electronic Trading
Powerful e-commerce solutions adopted by over 300 banks
across 60 countries to shape, configure and automate FX priceflows, whilst streamlining risk management, to meet the growing
demand for electronification.

Visit lseg.com/en/fx

LFX2697693/1-23|@LSEGplc

LSEG