CLS may affect credit lines
However, she warned that implementation of third-party services may take longer than some firms have claimed. "It affects every department of forex," she told delegates. "Some service providers say they can have a third party live in one month. You can complete the technology implementation, but that is not exploiting the full potential of the CLS system -- it takes longer than expected."
Stella told delegates that the launch of CLS was an "agent for change" in the FX markets and that it has already helped negate part of one of the biggest reasons for settlement risk -- time zone differences. The CLS settlement window, she said, starts at 7am London time and closes at midday London time.
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