Bank of America and Fundtech are collaborating to provide secure access for Internet transactions into the new Continuous Linked Settlement (CLS) Bank. Bank of America will Identrus-enable Fundtech's PAYplus CLSsolution, a browser-based service that allows companies to manage the settlement of their foreign exchange (FX) trades through CLS.
The agreement paves the way for the first use of Identrus-enabled security for a CLS application.
CLS is a new settlement system that reduces the systemic risk of foreign exchange settlement failure by providing the ability to settle each leg of a foreign exchange transaction simultaneously. Bank of America is one of 20 original CLS member banks.
Fundtech's PAYplus CLS solution allows CLS settlement members to process their own FX transactions as well as to offer FX settlement services to other banks and companies.
Using Identrus certificates, Fundtech's PAYplus CLS will provide a secure environment for companies to engage in FX transactions and settlement electronically via the Internet. The PAYplus CLS system lets users access CLS using an Identrus digital certificate on a smart card.
"Identrus enabled PAYplus CLS will allow banks and their clients to engage in FX transactions over the Internet, with the assurance that those transactions are secure and private," says Regina Seiler, Bank of America authentication services.
Bank of America is a founding member of Identrus, which was formed by global financial institutions to provide identity verification and authentication for Internet transactions. Identrus concentrates on securing business-to-business transactions by issuing digital certificates using a common, open standard.