The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

CLS fails to decide on pre-settlement netting

Much to my surprise, CLS did not decide to allow pre-settlement netting at its last board meeting, held on April 26 (see the April issue of Euromoney). One of my more cynical contacts pointed out my naivety. “If I was a gambling man, it’s because sitting on the fence was an available option and everyone couldn’t help themselves but straddle that puppy,” he suggested.

Another and more realistic take is that it was always going to be a tough job to get a 24-strong board representing many of the diverse participants in the industry to agree so readily to what would have been such a fundamental change. This is a point that Jonathan Butterfield, CLS’s executive vice-president of communications and marketing, is keen to stress.

“It’s very rare, if you are talking about a big industry-level change, to be able to roll out a new vision straight away. There are a lot of different banks to get to agree,” he says.

Butterfield believes that the issues surrounding the benefits of trade netting have been slightly misreported.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of acces below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£68.33 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree