Global CLS Bank Settlement Service Links Market With Vendor Registration Programme

CLS Bank International's Settlement Service will link seven of the world's central bank real time gross settlement systems for the first time, with over 65 shareholders from the world's major commercial and investment banking institutions.

First Published by e-Forex News: July, 2002

CLS Bank International's Settlement Service will link seven of the world's central bank real time gross settlement systems for the first time, with over 65 shareholders from the world's major commercial and investment banking institutions. A financial "Eco System" of institutions, their agents and participant central banks will eliminate the intra-day settlement risk in today's foreign exchange market. The scale of change is creating the opportunity for vendors - software providers, systems houses and consultants - to be linked through a formal global CLS Vendor Registration Programme.<br><br>CLS Settlement fundamentally changes the handling of foreign exchange settlement instructions. The intra-day settlement risk is replaced by a five hour real time settlement window. Settlement is final and irrevocable or funds are returned same day.
Joseph De Feo<br> Chief Executive Officer of CLS Group
"With the average daily turnover in global FX transaction recently estimated at almost US$2 trillion there has never been more of a need to reduce settlement risk. CLS represents the most dramatic change in settlement for over 300 years, involving over 65 of the world's largest banks, which have invested more than $300 million in CLS. The objective of CLS Vendor Registration programme is to assist shareholders in the implementation of this unique system. The intention is to migrate vendors to the role of participants, rather than just suppliers and in doing so assist in the implementation of CLS."