Alex Knight, the Head of EMEA of Baton Systems, a fintech company focusing on transforming post-trade processing through distributed ledger technology, points out that if managers miss the CLS cut-off or fail to meet it, they will have to settle bilaterally. This situation could potentially lead to a crucial point of failure, especially if the executing desk lacks bilateral credit lines with all the involved funds. This underscores the complexity and challenges faced by investors in this changing landscape.
