Continuous-linked conflict

Now that continuous-linked settlement is up and running, members are vying for third-party business. But it remains to be seen if the market is ready. Will all third-party providers prosper? Paul Lyon reports

Bankers breathed a sigh of relief when continuous-linked settlement (CLS), the industry initiative run by CLS Bank for eliminating settlement and clearing risk in the $1.2 trillion-a-day foreign exchange market, finally went live in September 2002. The much-hyped project had overcome numerous delays, and by all accounts the transition for those banks using the service was smooth. But project participants are now finding that their hard work is far from over, as settlement member banks turn