08 Jan 2004, Solomon Teague, Risk magazine
CLS member banks hold an account with New York-based CLS Bank for every currency traded. CLS Bank then settles the trades on a net-funded basis over a five-hour period when the opening times of the country-specific real-time global settlement systems overlap. Alternatively they are placed in a queue and monitored until they are settled.
“This program offers banks and financial institutions a wide range of modular services enabling them to concentrate on their core competencies and deploy their resources more effectively,” UBS said in a statement.
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