LONDON (Reuters) - U.S. bank Wells Fargo <WFC.N> has joined the more than 60 banks worldwide that process currency transactions directly through the settlement systems run by U.S.-based CLS, the two banks said in a statement on Tuesday.
CLS, a vital piece of currency market infrastructure owned by dozens of the world's largest commercial banks, has allowed banks over the past decade to cut the cost of insuring currency trades against the default of one of the parties.
With a number of the currency world's biggest European-based players cutting back on investment banking and the volume of financial risk they take, industry players say U.S. banks including JP Morgan have increased the share they hold in the $5 trillion market in the past year.
CLS said that Wells Fargo, the world's biggest bank by market capitalization and the third largest U.S. lender by total assets, joined 64 other settlement member banks in the system which settles $5 trillion a day on behalf of its clients.
(Writing by Patrick Graham; editing by John Stonestreet)