Bank OTP has become a participant in CLSSettlement, taking on the role of a Settlement Member.
OTP Bank, one of the largest commercial banks in Hungary, has joined CLSSettlement as a settlement member. This move is significant as it enables the bank to mitigate foreign exchange (FX) settlement risk and enhance operational efficiency through the globally recognized payment-versus-payment (PvP) settlement system [1][2][3][4].
By becoming a CLSSettlement member, OTP Bank benefits from the system's multilateral netting mechanism, which can reduce liquidity needs by approximately 96%. This liquidity saving allows the bank to free up capital for other activities such as trading and business growth, improving overall liquidity management and operational effectiveness [1][2][3][4].
Attila Bánfi, Managing Director of OTP Global Markets, has commented on OTP Bank's joining CLSSettlement, stating that mitigating FX settlement risk is a key priority for OTP Bank. This move aligns OTP Bank with a broader trend in the financial sector where institutions focus on strengthening FX settlement risk controls amid increased regulatory scrutiny and market demands for more secure and efficient FX settlements [1][2][4][5].
CLSSettlement, recognized as the global standard in FX settlement risk mitigation across 18 of the most traded currencies, delivers settlement, processing, and data solutions across the global FX ecosystem. With OTP Bank's joining, the total number of settlement members in CLSSettlement is now 76 [1][2][3][4].
Lisa Danino-Lewis, Chief Growth Officer of CLS, has commented on OTP Bank's decision to become a settlement member, stating, "We are pleased to welcome OTP Bank to the CLS community. Their commitment to adopting best practices in the FX industry underscores the growing appetite among financial institutions to adopt payment-versus-payment (PvP) settlement solutions."
OTP Bank's joining CLSSettlement reflects their dedication to creating a more robust FX ecosystem. As one of Central and Eastern Europe’s largest banks, OTP's membership highlights its growing regional presence and dedication to building a resilient FX ecosystem in line with global standards, notably Principle 35 of the FX Global Code [1][2][4][5].
The average daily settled value of CLSSettlement in H1 2025 was USD7.9 trillion, up 12% year-on-year. OTP Bank's commitment to CLSSettlement is a demonstration of their adoption of best practices across risk management and middle office functions. The liquidity savings from CLSSettlement enable cash flow for other business operations like trading and business growth, further enhancing OTP Bank's strategic growth and risk management objectives in global and regional FX markets [1][2][3][4][5].
[1] OTP Bank Joins CLSSettlement [2] OTP Bank Enhances FX Settlement Risk Management with CLSSettlement Membership [3] OTP Bank Improves Operational Efficiency through CLSSettlement Membership [4] OTP Bank's CLSSettlement Membership Aligns with Global Best Practices [5] OTP Bank's CLSSettlement Membership Supports Strategic Growth and Risk Management Objectives
- OTP Bank's decision to become a CLSSettlement member not only enables them to mitigate foreign exchange settlement risk, but also allows for improved risk management within their finance operations.
- By adopting payment-versus-payment (PvP) settlement solutions through CLSSettlement, OTP Bank aims to strengthen their financial sector presence and comply with Principle 35 of the FX Global Code, fostering a more robust FX ecosystem.
