Continuous Linked Settlement (CLS) is the new private sector response to increasing regulatory pressure to reduce foreign exchange settlement risk exposures.
The initiative has been live since the end of 2002 and is endorsed by the G10 central banks and lead regulators. The primary objectives of CLS are to eliminate the inherent settlement risk from the current foreign currency settlement processes and to provide a mechanism for containing any systemic risk arising from the failure of a major market participant.
Standard Chartered at the forefront
Standard Chartered Bank has been deeply committed to this industry initiative since its inception in 1997 and holds full shareholder status in the new Bank. Standard Chartered operates as a full Settlement Member within CLSB and extends comprehensive Third Party services to our customers, enabling them to take full advantage of the settlement risk benefits associated with FX settlement through CLS.
Cash Management for Financial Institutions
