CLS may affect credit lines

Nicoletta Stella, CLS project manager at ABN Amro, told delegates that the advent of third-party CLS services, whereby a CLS shareholder settles client banks’ trades on their behalf, could replace a large credit line. "The settlement member takes the risk," she said. "Credit lines are no longer a restriction."

However, she warned that implementation of third-party services may take longer than some firms have claimed. "It affects every department of forex," she told delegates. "Some service providers say they can have a third party live in one month. You can complete the technology implementation, but that is not exploiting the full potential of the CLS system -- it takes longer than expected."

Stella told delegates that the launch of CLS was an "agent for change" in the FX markets and that it has already helped negate part of one of the biggest reasons for settlement risk -- time zone differences. The CLS settlement window, she said, starts at 7am London time and closes at midday London time.

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.fxweek.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: