After the dust settles

Settlement risk

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Last year was the biggest test yet for the foreign exchange settlement system known as CLS Bank, an industry-wide private initiative launched in 2002 that works to remove settlement risk in forex deals.

Since it launched, CLS Bank has seen a steady rise in the number of trades it handles, and today settles the majority of interbank foreign exchange deals. This proved a major boon when Lehman Brothers collapsed on September 15 and traders across the world simultaneously scrambled to unwind positi

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