Doubts over CLS 'warehouse' system
The "warehouse solution" entails member banks sending trades to CLS at an earlier point in their 'lifecycle'. Instead of being sent from the back office, they would be sent to CLS once they have been captured, matched and are in the bank's risk system (FX Week, February 11).
Once they are in the CLS database as a matched trade, the bank can stop processing individual trades and instead process the net economic effect of aggregated or netted trades, through its middle and back offices.
Martin
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