European funds face upsurge in settlement risk after T+1
Trade body Efama finds up to 40% of daily FX flows may have to settle outside protection of CLS
Two-fifths of European fund managers’ daily foreign exchange flows could be forced to settle outside of CLS, a prominent trade association has warned.
According to a new whitepaper from the European Fund and Asset Management Association, the upcoming move to a T+1 securities settlement cycle in the US and Canada on May 28 would result in a significant increase in bilateral settlement risk for FX
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