In Brief: State Street Joins Forex Industry Group

State Street Corp. has joined a new industry organization created to reduce international foreign exchange trading risk.

The Boston-based bank company is the sixth U.S. bank to join CLS Services Ltd., which guarantees to settle member banks' foreign exchange contracts in the event one of them fails to do so.

As part of the association's program, CLS is setting up a New York-based bank to operate a foreign exchange settlement network system.

Earlier this year, CLS acquired Exchange Clearing House Ltd. and Multinet International Bank, two foreign exchange clearing institutions, as part of a move to consolidate foreign exchange settlement under a single roof.

Forty banks are members of CLS. U.S. member banks include BankAmerica Corp., Chase Manhattan Corp., Citicorp, First Chicago NBD Corp., and J.P. Morgan & Co.

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