The Continuous Linked Settlement (CLS) commenced in 2002. It is a global foreign exchange settlement system by which banks seek to reduce settlement risk. Banks may participate in CLS by joining as a settlement bank or third party. Settlement banks maintain currency accounts at CLS Bank and settles eligible financial trades with other members through that account.<\/p>\n
CLS settles transactions in 17 currencies including the euro, dollar, sterling and other major currencies. It operates on the basis of payment versus payment to eliminate the risk that one party may have settled first before the other with the risk of an intervening insolvency. CLS does not release bank\u2019s payment until the other counterparty payments has been made payment, so that funds are simultaneously exchanged.<\/p>\n
A bank which is a third-party member submits trade through a settlement member which settles the trade with the CLS. The third party\u2019s relationships are with the settlement member, not CLS.<\/p>\n
The volume of trades handled by CLS is of the order of several million a day with settlements being of the value of several trillion euro a day. There are nearly 10,000 participants of which 63 are members of CLS.<\/p>\n\n
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Wholesale Markets Over the last 30 to 40 years, there has been much greater level of intermediation in relation to savings and money markets. Most banks are unable to fund more than half of their lending from deposits. They accordingly need to source monies on money markets from other banks and through other intermediaries by […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[375],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/27649"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=27649"}],"version-history":[{"count":5,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/27649\/revisions"}],"predecessor-version":[{"id":30492,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/27649\/revisions\/30492"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=27649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=27649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=27649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}