Outline Link Settlement For Free

It currently settles trades in 17 currencies, three in North America (Canadian dollar, Mexican peso and US dollar), two in Africa and the Middle East (Israeli shekel and South African rand), six in Europe (Danish krone, euro, Norwegian krone, Swedish krona, Swiss franc and pound sterling) and six in the Asia-Pacific ...

CLS provides uniquely secure protection for cross currency settlement-payment versus payment. Under CLS, transactions are settled on a gross basis, whereas funding is on a netted basis.

Continuous Linked Settlement (CLS) is an inter- national payment system which was launched in Sep- tember 2002 for the settlement of foreign exchange transactions.

Established in 2002 as a payment-versus-payment (PvP) settlement system to reduce the principal risk arising from settling FX transactions, CLS's global settlement infrastructure reduces systemic risk and provides standardization for participants in many of the world's most actively traded currencies.

The main underlying reason for this is that the liquidity facilities are finite while there is no limit on the total value of the trades that you can attempt to settle via CLS.

A foreign exchange transaction settled through CLS requires an instruction for each side of the trade. Since the individual sides of the trade are recorded for both settlement values and number of transactions, both settlement values and the number of instructions are double-counted.

CLS is a real-time system that enables simultaneous settlement globally, irrespective of time zones. CLS is an ongoing process of: submitting instructions - receiving payments of specified currencies from customers.

CLS operates a global multi-currency cash settlement system through which settlement risk can be mitigated with finality using a combination of PvP (payment versus payment) settlement over CLS central bank accounts, local real-time gross settlements systems (RTGS) and multilateral payment netting supported by a ...