What Happens If an Instruction Remains Unmatched And/or Unsettled Through

question 334

Multiple Choice

What happens if an instruction remains unmatched and/or unsettled through CLS Bank?

• A) If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trades outside of CLS Bank on a net basis.
• B) If there is only one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally decide to settle the trade outside of CLS Bank on a net basis.
• C) If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trade outside CLS Bank on a gross basis.
• D) If there is more than one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally instruct the CLS Bank to settle the trades.

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Definitions:

Nationwide Shipments

The transportation of goods across an entire country, encompassing logistics and distribution practices that facilitate the movement of products from one region to another.

Telegraph

An outdated form of communication technology that transmits text messages over long distances through the use of coded signals.

Technological Innovations

Developments in technology that introduce new methods, ideas, or products that significantly improve upon the existing standards.

International Markets

Overseas markets where goods, services, and financial securities are traded or offered, creating a platform for global economic exchange and investment opportunities.