Cryptocurrency Q&A
Is CLS a CCP?
Is CLS a CCP?
CryptoKnight
Mon Nov 18 2024
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5 answers
1232
I'm trying to figure out if CLS can be considered as a CCP. I'm looking for clarification on this matter as I need to understand the relationship between these two concepts.
5 answers
DondaejiDelightfulCharmingSmile
Tue Nov 19 2024
In the example provided, the trade remains directly between Banks A and B. CLS merely provides the infrastructure and services to make this transaction possible.
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TaegeukWarrior
Tue Nov 19 2024
CLS plays a crucial role in the financial industry, but it's important to understand its limitations.
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KatanaBlade
Tue Nov 19 2024
This distinction is important as it highlights the unique role CLS plays in the market, which is different from that of a central counterparty.
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Riccardo
Tue Nov 19 2024
Specifically, CLS is not a central counterparty in transactions. This means that it does not act as an intermediary that guarantees the trade between two parties.
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BlockchainBaronGuard
Tue Nov 19 2024
Instead, CLS facilitates the exchange of currencies between banks, ensuring that the process is efficient and secure.
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