National Bank said today that the bank recently joined CLS (Continuous Linked Settlement), an international organization that acts as a clearing agent for the settlement of foreign exchange transactions.
CLS allows financial institutions that carry out foreign exchange transactions to minimize the risk of non-payment of these transactions.
“Because CLS eliminates settlement risk, it has become a vital partner for the banking industry. National Bank is the second Canadian bank to join CLS,” noted Vincent Butkiewicz, vp – financialmMarkets at National Bank.
The benefits of CLS settlement process are shared by all participants, directly or indirectly involved in CLS. As a third party, National Bank has signed a service agreement with Societe Generale in France, which will process payments through CLS on its behalf.
National Bank joins CLS for foreign exchange transactions
IE Staff