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Who uses CLS?

Asked by Anonymous Sep 02, 2026 0 views 1 answers
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Answered Sep 02, 2026

The Continuous Linked Settlement system is utilized extensively by a vast network of international financial institutions, commercial banks, non-bank financial firms, investment funds, and multinational corporations that engage in high-volume foreign exchange trading. The user base includes dozens of direct settlement members—comprising the world's largest global banks—alongside thousands of third-party user institutions, asset managers, hedge funds, and corporate treasuries that access the infrastructure indirectly through settlement member banks. By leveraging this collaborative network, these entities can execute multi-currency exchanges securely, completely eliminating the danger of principal loss where one party delivers a sold currency but fails to receive the purchased currency due to counterparty default or operational failure. Central banks and regulatory authorities also interact closely with the system to monitor systemic risk, oversee compliance standards, and ensure that global financial markets maintain smooth operational liquidity even during periods of severe economic stress or heightened market volatility.

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