Taipei Fubon Bank is the first bank in Taiwan to commit to using CLSNet, CLS’s bilateral payment netting service for more than 120 currencies.
Taipei Fubon Bank is the latest participant to join the growing CLSNet community, which includes eight of the top 10 global banks. The service has seen significant growth in adoption over the past eighteen months, reporting record volumes and growth. The average daily notional value of net settlements on CLSNet has consistently exceeded USD 105 billion over the past 12 months and in September 2023 reached a record daily notional value of USD 367 billion netted.
CLSNet offers standardization and automation through a centralized platform that reduces risk, lowers operational costs and optimizes liquidity for a growing network of foreign exchange market participants. As settlement risk in the foreign exchange market continues to be a focus, especially in emerging market currencies and other developing market segments, participants are looking for ways to effectively mitigate risk through automated post-trade services such as CLSNet.
Lisa Danino-Lewis, Chief Growth Officer, CLS, commented:
“We are delighted to welcome Taipei Fubon Bank, our first Taiwanese bank, to the global CLSNet network. This latest addition highlights the increasing focus by foreign exchange market participants on the importance of risk mitigation, operational efficiency and liquidity management. At CLS, we are committed to the development of CLSNet and are excited to further expand our services in the Asia Pacific region.”
James Wang, Head of Operations, Taipei Fubon Bank, added:
“By becoming a CLSNet participant, we will be able to access unparalleled levels of standardization and centralization in our post-trade processes. In addition, participating in the service enhances our operational efficiency, reduces risk and lowers our costs.”