Asked Oct 7, 2019
  • Which of the following eliminates settlement risk?


  1. Trans-European Automated Real-Time Gross Settlement Express Transfer System (TARGET) TARGET2 payment system
  2. Continuous Linked Settlement (CLS)
  3. Intercompany net settlement systems
  4. Real-Time Gross Settlement (RTGS) systems

Expert Answer

Step 1

Continuous Linked Settlement (CLS) is a type of payment system which eliminates settlement risk when there are foreign exchange trades. This is usually done as the process involves pay...

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