The Union Bank of Taiwan has signed up to Citibank's continuous linked settlement (CLS) service, allowing it to submit and settle foreign exchange transactions through the CLS Bank.
CLS is a real-time global settlement process that reduces risk caused by foreign exchange (FX) transactions occurring across different time zones. Both sides of a FX transaction are settled simultaneously in the CLS Bank on a payment versus payment basis.
Citibank is one of a host of CLS settlement members competing to offer third-party services to mid-tier and smaller institutions through the CLS Bank.