Abstract
One of the most recent payment infrastructure innovations – the process of Continuous Linked Settlement (CLS) – is explored in this chapter. At the outset, a brief introduction regarding the various ways banks may raise foreign currency deposits via entering into FX trades is provided. The origins and operational framework of CLS are then described. To depict the mechanics of CLS, we then employ systems of financial accounts to demonstrate a FX spot trade both outside and through CLS.
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Bindseil, U., Pantelopoulos, G. (2023). FX Operations and CLS. In: Introduction to Payments and Financial Market Infrastructures . Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-39520-8_7
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DOI: https://doi.org/10.1007/978-3-031-39520-8_7
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