MUFG Bank Launches CLSNet for Enhanced FX Efficiency

MUFG Bank launches its operations on CLSNet, the innovative bilateral payment netting calculation service from CLS that supports over 120 currencies. This development marks a significant milestone for MUFG, now among the elite participants in a service that includes eight of the top ten global banks. 

Over the past year, CLSNet has demonstrated remarkable growth, with the average daily netted value consistently surpassing USD 120 billion. Notably, in June 2024, this figure soared to USD 593.2 billion, highlighting the platform’s expanding network effect. As more financial institutions join, the potential for fully automated netting calculations will continue to increase, enhancing connectivity and efficiency among users. 

CLSNet streamlines and standardizes post-trade processes across various foreign exchange (FX) trade types, including same-day trades and non-deliverable forwards (NDFs). Furthermore, by utilizing this service, market participants can significantly reduce operational risks and improve efficiency across their currency transactions. Given the persistent concerns surrounding settlement risk, especially within emerging market currencies, there is a growing emphasis on finding effective risk mitigation strategies. 

MUFG Bank Launches CLSNet for Enhanced FX Efficiency

Lisa Danino-Lewis, CLS’s Chief Growth Officer, expressed enthusiasm about MUFG’s integration into CLSNet, stating, “We are delighted to announce that MUFG has gone live on CLSNet. As our network expands, more and more participants around the world will experience significant improvements in operational efficiencies and risk mitigation.” 

Junya Kishida, Head of the Global Markets Operations Division at MUFG Bank, emphasized the benefits of this new capability, noting, “Joining the service will improve our operational efficiency and reduce risk for the currencies that are not currently eligible for CLSSettlement while supporting our adherence to the best practice settlement risk principles of the FX Global Code.” 

Lastly, by centralizing and automating the netting calculation process, CLSNet enhances the operational landscape for its users, paving the way for greater efficiency and reduced risk in the global FX market.

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