Timing of FX trades is simultaneous, final and irrevocable. National RTGS systems using CLS currencies will extend hours so that there is an overlap of operating hours among them so that CLS Bank settlement can complete. All FX trades will be conducted through CLS Bank by settlement members of CLS Services Ltd, each of which will have a single CLS Bank account for its participating branches and affiliated entities. User members of CLS Services Ltd will conduct trades through partnerships with settlement members and will have no direct accounting relationship with CLS Bank. Third-party banks will conduct trades through arrangements with either settlement members or user members.
Membership is offered only to equity owners or shareholders.
The establishment of CLS Bank constitutes a major shift in international banking practices. In addition to providing a valuable tool for reducing FX settlement exposure, CLS will fundamentally transform the way banks interact and manage risk. Increased customer demand will mandate that bank systems manage a customer's projected exposures across multiple banks, systems and time zones at every point. Fault tolerant software becomes essential. Liquidity management will become a competitive differentiator that allows banks to offer new products and services to existing customers, and attract new customers with international business requirements.