- CLS' popularity in Asia is expected to increase with the inclusion of the Singapore and Hong Kong dollars in 2003 and 2004, respectively.
- This case study examines how Dah Sing Bank (DSB), as a third-party participant, came to choose HSBC as its CLS settlement member.
- DSB's comparison of potential settlement members was not limited to the traditional criteria such as system requirements and pricing, as these factors were found to be similar among settlement members' third-party participant service proposals; rather, DSB expanded its examination to include the quality of pre- and post-implementation support, the degree of data confidentiality and the timeliness of real-time information access.
Continuous Linked Settlement (CLS) is a new multilateral clearing system for foreign exchange (FX) transactions. It uses the technique of payment-versus-payment to eliminate cross-currency settlement risk (also known as Herstatt risk1) by enabling an irrevocable and simultaneous exchange of a pair of currency payments in an FX transaction settlement between the two parties involved.
