BME FXS

What is BME FXS - Currencies - Contact - FAQs

The payment system for secure settlement of FX transactions

FXS is the Payment System managed by BME as a solution to eliminate principal risk in the settlement of FX transactions, by providing a Payment versus Payment settlement service.

FXS is a secure alternative to mitigate the risks of bilateral settlement. FXS service is based on an advanced automated Payment versus Payment System, under supervision of the Bank of Spain.

Among other advantages, FXS allows improving operational efficiency by netting credits and debits, as well as reducing the consumption of credit lines between counterparties.

Features:

• In addition to the settlement of transactions traded in the BME FX Spot platform, the service supports the settlement of transactions carried out in any other FX platform
• Settlement in D, D+1, D+2 and D+X
• Multiple currencies supported
• Integrated in SWIFT
• Subject to CPMI-IOSCO principles for financial market infrastructures
  
  

Advantages:

• Eliminates Herstatt risk (principal risk)
• Eliminates counterparty risk, thus may expand operational limits among the entities and reduce the consumption of credit lines between counterparties
• Reduces costs as transactions can be net settled
  
  

How it works:

1. Reception of settlement instructions from participants on transactions in which they are counterparties, to be settled through FXS. Instructions can be sent to FXS via MT300 SWIFT messaging, via API interface, or by manually inputting transaction details into FXS terminal.
2. Validation of operations (format and content)
3. Matching of instructions related to the same transaction
4. Allocation and global position balance calculation
5. Bilateral netting and Payment versus Payment algorithm calculation
6. Pay-in call to all counterparties
7. Validation of received funds and execution of Pay-outs

Currencies

Contact

For more information about BME FXS: bmefx@grupobme.es.