Pension systems in Europe rely heavily on state-run pay-as-you-go arrangements. Funded pension arrangements, be they publicly or privately managed, are generally less developed.
In its offering, the CLS mitigates settlement risk through the provision of its unique payment-versuspayment settlement service which has direct links to the real-time gross settlement (RTGS) systems of the currencies it settles. In addition to mitigating settlement risk, the CLS also contributes to streamlining and standardising foreign-exchange operations, helping to reduce costs.