CLS has significant impact on trading practices

CLS has significant impact on trading practices

First Published: e-Forex Magazine 16 / News / October, 2004

A recent TowerGroup survey identified significant changes that are being effected in the front office as a result of CLS participation.Seventy-seven percent of CLS Settlement Member respondees reported changes in the credit approval process for CLS counterparties, with 59% reducing use of credit limits, and 15% eliminating settlement limits for CLS counterparties. Twenty-four per cent of member respondents reported changed trading practices with counterparties, of which 80% indicate that they tend to favour CLS counterparties. Thirty-nine per cent of member respondents also cited that they had improved access to counterparties in CLS. As far as third-party respondents are concerned, 54% reported changed trading practices with counterparties, of which 68% indicate that they tend to favour CLS counterparties and 47% received larger trading lines....continued

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