CLS declines delaying FX cutoff as US stock changes loom

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CLS declines delaying FX cutoff as US stock changes loom
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First-ever speedcubing competition in P.E.I. draws large crowd | SaltWire #rubikscube #charlottetownNEW YORK - CLS Group, the largest currency settlement system, said on Tuesday it will not change its cut-off time for payment instructions for foreign exchange trades, dealing a blow to foreign asset managers hoping for some reprieve from a new U.S. rule putting them at risk of transaction failure.Beginning May 28, the U.S. Securities and Exchange Commission requires investors start settling U.S.

"We won't make any changes on our operational timeline, because we have members who can't support that," said Lisa Danino-Lewis, chief growth officer at CLS. Changing the current deadline at midnight CET for submitting instructions related to FX trades for next-day settlement would also require regulatory changes and more comprehensive risk assessment, CLS said.

CLS' members who cannot accommodate the change represent approximately 50% of the $6.5 trillion in average daily value of transactions that CLS settles.

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