CLS: the missing link in foreign exchange settlements
Foreign exchange (FX) markets are in the midst of profound change, yet many investment managers who trade currencies are unaware of it. The Continuous Linked Settlement (CLS) service offered by CLS Bank International provides a process to manage settlement risk (the risk of loss when a party pays the currency it sold but doesn't receive the currency it bought) for FX market participants, including investment managers. Those who are unaware of CLS may be experiencing unnecessary and excessive
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