On Wednesday it was revealed that MUFG Bank had recently gone live on CLSNet, CLS’s bilateral payment netting calculation service.
CLSNet Expands Reach as MUFG Bank Joins the Network
CLS explained in a press release that the move is expected to significantly improve operational efficiency and reduce risk for the bank.
CLSNet, a platform designed to standardise and centralise post-trade processes for over 120 currencies, has gained traction in recent years.
By joining the network, CLS said MUFG will benefit from the expanding roster of counterparties and the automated netting calculation process, which can help mitigate settlement risk.
Lisa Danino-Lewis, Chief Growth Officer at CLS, stated that as the company’s network expands, “more and more participants around the world will experience significant improvements in operational efficiencies and risk mitigation.”
Meanwhile, Junya Kishida, Head of Global Markets Operations Division at MUFG Bank, believes joining the service will improve MUFG’s operational efficiency and reduce risk for currencies that are not currently eligible for CLSSettlement.
CLS explains that by automating the netting calculation process, CLSNet helps market participants comply with the FX Global Code, particularly Principles 35 and 50.
It ensures that trade instructions are validated and matched and that only matched trades are included in the automated net calculation.
