Business

End of the euro currency could be in sight

LONDON (Dow Jones)–Settlement system CLS Bank International–the backbone of the foreign-exchange market–is running stress tests to prepare itself for the possible breakup of the euro, people familiar with the matter told Dow Jones Newswires Tuesday.

The tests form the first solid sign that the currencies-trading industry is preparing for the worst from the common currency area’s deepening debt crisis.

The New York-based industry utility, which ensures that each side of currencies trades gets paid, is keen to ensure that its systems are well equipped to cope with disruptive “Lehman-type” events and could withstand the stress of a country leaving the euro zone, these people familiar with the matter said. One of the people added that getting new European currencies up and running in the system would take “at least a year”.

Full story: Forex Processor CLS Bank Testing Euro Breakup Scenario