MUFG Bank (MUFG) has signed up to CLSNet, CLS’s bilateral payment netting calculator service. The agreement means that MUFG will be the first Japanese bank to start using the service that supports more than 120 currencies globally.
Offering standardisation and automation through a single platform, CLSNet aims to mitigate risk, reduce operational costs and optimise liquidity for currency flows.
CLSNet has seen a substantial rise in adoption this year, with a 495 per cent year-on-year increase in the average daily notional of net calculations in Q3 2022.
Lisa Danino-Lewis, chief growth officer at CLS, says: “We are delighted to welcome MUFG Bank as the first Japanese participant in 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.”
Junya Kishida, head of global markets operations division, MUFG Bank, said: “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.”
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