CLS may affect credit lines

NEWS

LONDON – The new settlement service for currency markets, Continuous Linked Settlement (CLS) could reduce the importance of credit lines in forex, delegates at a conference held by FX Week, Operational Risk’s sister publication, heard in November.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 th