ABSTRACT
CLS bank service is the first global infrastructure to be simultaneously connected to the systems of fifteen currencies with a potential for more currencies to be added to the service over the coming years. Domestic large-value payment systems are commonly ‘connected’ to domestic central securities depositories (CSDs) to facilitate real-time delivery versus payment (DvP) in the securities market, again as a methodology for reducing settlement risk. In turn a number of CSDs are connected to central counterparties all of which are illustrated in the concentric rings in Figure 14.1. Theoretically it is possible for an operational incident in a central counterparty infrastructure on one side of the world to have an impact on a large-value payment system on the other side of the world in a matter of minutes through this connected/network environment.
