Discover how CLS settlement can benefit your organization and the practical steps you need to take to get started.
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It is widely recognized that settlement risk is the most significant systemic risk to participants in the over-the-counter (OTC) FX market.
Continued growth in the FX market, in terms of volumes and participation, the financial crisis and heightened credit concerns means that settlement risk has once again become a primary focus for regulators and the broader FX industry. This renewed focus has driven a surge in participation in the CLS settlement service.
Settling FX transactions through CLS is recognized as an effective way of mitigating settlement risk. CLS provides settlement services to participants both directly (for its Settlement Members) and indirectly (through Settlement Members providing access to third parties).
In addition to mitigating settlement risk, CLS has also streamlined and standardized FX operations, generated liquidity efficiencies and facilitated growth in the FX market.
Explore this section to find out how your organization could benefit from using CLS.