The Bank of New York has been selected by Chinatrust Commercial Bank to provide third party
settlement
services
in connection with Continuous Linked SettlementTM (CLS).
The Bank of New York will provide third party CLS services for Chinatrust’s head office in Taipei and its branches and subsidiaries around the world.
The arrangement will result in the integration and optimization of Chinatrust’s treasury, trading, cash management and reporting functions with The Bank of New York’s settlement operation. Chinatrust will use SafeSettleSM, The Bank of New York’s proprietary Internet link to CLS third party settlement services, to monitor CLS settlement on a real-time basis.
“Over> the past few years, The Bank of New York has provided a full range of banking services to Chinatrust,” says Terresa Tu, head of financial institutions at Chinatrust. “With the launching of CLS, we required tools to monitor each stage of our foreign exchange transactions through CLS, and after a long and comprehensive evaluation, we selected The Bank of New York as our CLS provider. The Bank of New York provides us with the
ability
to
monitor our transactions, value-added services, end-to-end testing and high-quality customer service. We are pleased to have the opportunity to enhance our business relationship.”
Karen Peetz, senior vice president and division head of The Bank of New York’s Cash Global Payments Group, added: “CLS will enable Chinatrust to reduce its settlement risk and process foreign exchange payments in a more efficient manner. SafeSettle’s drill-down viewing of specific item details, as well as its summary and detail reports, provides our clients with important tools to help them track and better manage their foreign exchange transactions.”
Kenneth Lopian, executive vice president and division head of The Bank of New York’s Asia-Pacific Division, said: “We are extremely pleased to provide third-party CLS services to Chinatrust. Our mandate with Chinatrust underscores our commitment to offering this important new service to other Asia-based clients.
The Bank has had a long and mutually beneficial relationship with Chinatrust and CLS provides an excellent opportunity for us to broaden that relationship.”
Chinatrust Commercial Bank, the former China Securities Investment Corporation established in 1966, is headquartered in Taipei, Taiwan. Chinatrust is the largest private bank in Taiwan, with over $26 billion in assets and 118 offices in Asia, Europe, North and South America.