MUFG Bank goes live on CLSNet
30 October 2024 UK
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MUFG Bank has gone live on CLSNet, a bilateral payment netting calculation service for more than 120 currencies.
The Continuous Linked Settlement (CLS) group says that as its community continues to build, users of the service will benefit from the expanding roster of counterparties with whom they can automate the netting calculation process.
Lisa Danino-Lewis, chief growth officer at CLS, says: 鈥淎s our network expands, more and more participants around the world will experience significant improvements in operational efficiencies and risk mitigation.鈥�
The average daily netted value 2 in CLSNet has consistently exceeded US$140 billion over the last 12 months, and in June 2024, it reached US$593.2 billion netted, according to CLS.
Designed to standardise and centralise post-trade processes for currencies across various foreign exchange (FX) trade types, CLSNet aims to help market participants reduce risk and achieve greater operational efficiency.
Junya Kishida, head of the Global Markets Operations division at MUFG Bank, adds: 鈥淛oining the service will improve our operational efficiency and reduce risk for the currencies that are not currently eligible for CLS Settlement, while supporting our adherence to one of the best practice settlement risk principles of the FX Global Code.鈥�
CLSNet validates all trade instructions and matches them to the predetermined cut-off times between counterparties for each currency, to ensure that only matched trade instructions are included in the automated net calculation and that there is a single common record of the net payment obligations.
The firm adds that by automating the netting calculation process via a centralised platform, users can achieve operational efficiency and increased risk mitigation for currencies that are not currently eligible for CLSSettlement.
The Continuous Linked Settlement (CLS) group says that as its community continues to build, users of the service will benefit from the expanding roster of counterparties with whom they can automate the netting calculation process.
Lisa Danino-Lewis, chief growth officer at CLS, says: 鈥淎s our network expands, more and more participants around the world will experience significant improvements in operational efficiencies and risk mitigation.鈥�
The average daily netted value 2 in CLSNet has consistently exceeded US$140 billion over the last 12 months, and in June 2024, it reached US$593.2 billion netted, according to CLS.
Designed to standardise and centralise post-trade processes for currencies across various foreign exchange (FX) trade types, CLSNet aims to help market participants reduce risk and achieve greater operational efficiency.
Junya Kishida, head of the Global Markets Operations division at MUFG Bank, adds: 鈥淛oining the service will improve our operational efficiency and reduce risk for the currencies that are not currently eligible for CLS Settlement, while supporting our adherence to one of the best practice settlement risk principles of the FX Global Code.鈥�
CLSNet validates all trade instructions and matches them to the predetermined cut-off times between counterparties for each currency, to ensure that only matched trade instructions are included in the automated net calculation and that there is a single common record of the net payment obligations.
The firm adds that by automating the netting calculation process via a centralised platform, users can achieve operational efficiency and increased risk mitigation for currencies that are not currently eligible for CLSSettlement.
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