MUFG Joins CLSNet
Posted by Colin Lambert. Last updated: December 1, 2022
MUFG Bank has become the first Japanese bank to commit to using CLSNet, CLS’s bilateral payment netting calculation service for over 120 currencies. It will join what CLS says is an expanding community, which includes eight of the top 10 global banks.
CLS says the netting service has seen a substantial rise in adoption this year, with a 495% year-on-year increase in the average daily notional of net calculations in Q3 2022. It recently reported hitting a new peak of $100 billion notional daily through CLSNet.
“As the global network continues to grow, participants will benefit from the expanding range of netting counterparties, as well as the improvements to liquidity optimisation, operational efficiencies and risk mitigation benefits of the service,” says Lisa Danino-Lewis, chief growth officer, CLS.
Junya Kishida, head of global markets operations division, MUFG Bank, adds, “CLSNet provides unparalleled standardisation and centralisation of post-trade processes across the global currency spectrum. Our participation in the service will be integral to our ability to improve operational efficiency and reduce risk for the currencies that are not currently eligible for CLSSettlement. CLSNet also supports MUFG Bank’s adherence to the best practice settlement risk principles of the FX Global Code.”