The Union Bank of Taiwan has signed up to Citibank's continuous linked settlement CLS service, which enables it to submit and settle foreign exchange transactions through the CLS Bank. Continuous Linked Settlement CLS is a real-time global settlement process that reduces settlement risk caused by foreign exchange FX transactions occurring across different time zones.
The CLS Bank went live in September 2002, enabling member banks put details of their foreign currency trades directly into a CLS system. CLS Bank then matches and settles the trades, netting positions in a five-hour window in each 24-hour period.
Seven central banks, including the U.S. Federal Reserve, and 66 major financial firms spent $300 million...
