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It does not use moon clips its a .357 Mag which is a rimmed case moon clips are used to allow the use of rimless cases in revolvers

Yes, the cylinder is cut for Moon clips John. Per S&W : Smith & Wesson's Performance Center is the ultimate expression of old-world craftsmanship blended with modern technology. The 686 model comes with Performance Center's unfluted cylinder, chrome teardrop hammer, cylinder cut for Moonclips, and PC tuned action.

James Moon clips on a 357 ?

Yep: http://www.smith-wesson.com/firearms/performance-center-model-686-plus-0 -- Performance Center pistols usually are cut for them.