FX traders to kiss goodbye to settlement risk

FEATURE - Currency traders, more aware of the potential for disruption in the financial system after September 11, should draw comfort from a long-awaited settlement system linked to central banks that is due to go live this year.

Continuous Linked Settlement (CLS) is the industry's answer to the risk of a counterpart default in the two days between paying out on a currency deal, and that deal settling.

The danger of a chain of defaults in the $1.2-trillion a day global currency markets was

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