Continuous Linked Settlement (CLS), is an initiative by a consortium of the world’s largest foreign exchange clearing banks to address the risk of loss of principal associated with the settlement of foreign exchange trades often known as foreign exchange settlement risk. It addresses the long-standing risk of serious payment and liquidity problems resulting from failed foreign exchange settlements, particularly the risk of one side paying in one currency but failing to receive the counter payment in the other currency on a foreign exchange trade.
The key features of CLS Bank are:
CLS provides uniquely secure protection for cross currency settlement-payment versus payment.
Under CLS, transactions are settled on a gross basis, whereas funding is on a netted basis.
CLS Bank’s unique process delivers settlement finality using Central Bank funds to simultaneously settle transactions in real time.
The CLS process has a solid legal and regulatory framework. Settlement is final the moment instructions cross CLS Bank’s books.
Settlement is delivered by robust, resilient and secure technology systems and procedures Settlement is only available through CLS Bank and its settlements members.
CLS Bank does not guarantee settlement.
Operational FAQs
Please mail on sh-keylink-apac@ubs.com and sh-keylink@ubs.com giving details of user id and contact number (please mark cc to cls@ccilindia.co.in)
Please mail on sh-keylink-apac@ubs.com and sh-keylink@ubs.com giving details of user id and contact number (please mark cc to cls@ccilindia.co.in)