CLS cuts costs as well as risk, says survey
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The research found that the cost of processing a CLS interbank trade in 2004 was $1.30, compared with $3.70 for a non-CLS interbank trade, and $5.80 for a corporate trade.
Jeremy Smith, director of financial services at Z/Yen, said the lower costs mainly arise from greater straight-through processing. "The static data is all set up in advance, confirmation process is automated and there are no fails," he said.
This has allowed many banks to scale up their FX volumes without additional processing
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