Bank OTP has become a part of the CLSSettlement, taking on the role of a Settlement Member.
In a significant move, OTP Bank Plc., one of the largest commercial banks in Hungary and a key player in the Central and Eastern European region, has joined CLSSettlement as a settlement member. This decision reflects OTP Bank's dedication to creating a more robust Foreign Exchange (FX) ecosystem and aligning with the best practices outlined in Principle 35 of the FX Global Code.
CLSSettlement, a globally recognised standard in FX settlement risk mitigation across 18 of the most traded currencies, aims to mitigate FX settlement risk, improve operational efficiency, and enhance liquidity. By joining CLSSettlement, OTP Bank brings the total number of settlement members to 76.
Lisa Danino-Lewis, Chief Growth Officer at CLS, commented on OTP Bank's decision, emphasising the importance of adopting such best practices. She stated that the joining of OTP Bank demonstrates the growing appetite among financial institutions for payment-versus-payment (PvP) settlement solutions.
Attila Bánfi, Managing Director of OTP Global Markets, also commented on the move, stating that mitigating FX settlement risk is a key priority for OTP Bank. He further added that this decision is part of OTP Bank's commitment to adopting best practices across its risk management and middle office functions.
The liquidity savings enabled by CLSSettlement allow cash flow to be available for other business operations like trading and business growth. Multilateral netting through CLSSettlement yields significant liquidity benefits for settlement members, resulting in liquidity savings of approximately 96%.
In H1 2025, CLSSettlement had an average daily settled value of USD7.9 trillion, up 12% year-on-year, demonstrating the growing importance and adoption of such solutions.
OTP Bank Plc. is classified as a significant credit institution at the time of the announcement of its membership in CLSSettlement. As a member, OTP Bank will benefit from the robust infrastructure and services provided by CLSSettlement, further strengthening its position in the FX market.
This move by OTP Bank underscores the broader trend among financial institutions focusing on mitigating FX settlement risk. It is expected that more institutions will follow suit, further enhancing the FX ecosystem and promoting greater risk mitigation and operational efficiency.
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