The continuous linked settlement (CLS) foreign exchange system will be opened up to fund managers following agreement between custodians and CLS Group, owner of CLS Bank International which operates the system.

The agreement will enable custodians to settle their fund managers' FX transactions through CLS Bank. Of the total $1.2 trillion (€1.19 trillion) a day FX market, around 10% of transactions are related to cross-border securities trading where custodian banks settle on behalf of their fund manager clients.