CLS Bank International Settlement Service to Start in 2002
The CLS Bank International (CLS Bank) settlement service, the global financial industry initiative to eliminate the settlement (temporal) risk that arises from foreign exchange transactions, will now launch a live service in the first half of 2002. Trials will start in the first quarter of 2002, enabling a fully live service to be available in the following quarter. CLS Bank will provide a new global infrastructure for multi-currency payment clearing and settlement. CLS and its 67 Shareholder institutions have completed the financial, legal, operational and the majority of the risk management steps required in achieving this change in global financial operations. Live ‘trials’ of the service, using pre-arranged (‘scripted’) foreign exchange trades to generate the settlement instructions, will begin towards the end of the first quarter of 2002, with ‘end-to-end’ live trialing of CLS Bank’s operations.