Although in the settlement of foreign exchange transactions CLS acts only as an agent and not as a counterparty, various risk management measures have been implemented in order to ensure that settlement is completed possibly in all circumstances, thereby keeping any repercussions of a potential default by a participant for the remaining participants as small as possible.24 Every instruction must therefore go through various tests before it is accepted for settlement by CLS. If the test requirements are not met, an instruction is not settled but remains in a queue. The following conditions must be met for an instruction to be settled: