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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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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