We study the role of cross-phase modulation (CPM) occurring between the two counter-propagating parts of a signal wave in a standard SPM-based nonlinear optical fiber loop mirror (NOLM). For pulse train with high duty-cycle, we experimentally observe the influence of cross-phase modulation on NOLM transmittivity. Finally, we propose a solution based on properly designed dispersion imbalanced NOLM to overcome undesirable CPM effects.