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Continuous-linked settlement

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The banking industry has mixed emotions about the introduction of continuous linked settlement (CLS), a global system designed to substantially reduce foreign exchange transaction risk by settling trades in real-time.

To begin with, software problems associated with internet links have forced New York-based CLS Bank – the organisation implementing the programme – to postpone its introduction until at least the second quarter of 2002.

This is the second major delay to CLS. The very first ‘go-