WestLB to Implement Citibank's FX Settlement Offering
WestLB has subscribed to Citibank CLSTM Settlement Services for foreign exchange settlement. Continuous Linked Settlement (CLS) aims to reduce the settlement risk caused by foreign exchange transactions occurring across various time zones. This is achieved by the simultaneous settlement of both sides to a foreign exchange transaction. CLS will initially commence operations with approximately 40 participating banks. Citibank e-Business has developed Citibank CLS Settlement Services, which WestLB will be able to offer to German savings banks and Landesbanks. Through this agreement, the advantages of CLS settlement will be made accessible to a large number of qualified financial institutions. Previously, there was no dedicated mechanism available in which financial institutions could utilize Citibank’s infrastructure to settle their foreign exchange transactions on a payment vs. payment basis.