The globe's largest currency trading settlement system, the CLS Bank, had announced it managed an average of US$5.58 trillion a day in trades last month. This is the New York based firm's largest volume on record.
The bank was founded in 1997 by leading Forex trading banks that had the support of central banks. It also houses the Bank for International Settlements in order to settle foreign exchange transactions. CLS means Continuous Linked Settlement and it is designed to do away with the Herstatt risk of default assumed by one party in a foreign currency deal. With the system, the two parties are able to trade simultaneously and would pay out and receive the currencies that were being exchanged.
The average daily instructions that have been submitted to the bank increased by nearly 10% from the previous month to 1,460,584, which is also a similar record as confirmed through a statement by the bank.