Bank OTP Now Part of CLSSettlement as a Participating Settlement Member
OTP Bank, one of the largest commercial banks in Hungary and a key player in the Central and Eastern European region, has joined CLSSettlement, a globally recognised financial market infrastructure group delivering settlement, processing, and data solutions across the FX ecosystem [1][2][3].
By becoming a CLSSettlement member, OTP Bank can leverage payment-versus-payment (PvP) settlement, which eliminates principal risk by ensuring simultaneous exchange of currencies in FX trades [1][4]. This move signifies OTP Bank's commitment to mitigating foreign exchange (FX) settlement risk and improving operational efficiency through adopting the widely recognised global standard for FX settlement risk management.
The average daily settled value of CLSSettlement in H1 2025 was a staggering USD7.9 trillion, covering 18 of the most traded currencies [1][2][3][4]. This move by OTP Bank reflects its dedication to strengthening the FX ecosystem and adopting best practices in risk management and middle office operations.
One of the key benefits of CLSSettlement is the significant liquidity benefits it offers. Through multilateral netting among CLS members, liquidity needs are reduced by about 96%, freeing up capital for other uses such as trading or business growth [1][2][3][4].
OTP Bank's decision to join CLSSettlement is part of a broader trend among financial institutions focusing on mitigating FX settlement risk and increasing efficiencies. In fact, OTP Bank is the second new CLSSettlement member in 2025, bringing the total to 75 members [1][2][3].
CLSSettlement is recognised as the global standard in FX settlement risk mitigation. Its PvP solution virtually eliminates the risk that one party pays out the currency it sold but does not receive the currency it bought, a major concern in FX trading [1][4].
Attila Bánfi, Managing Director of OTP Global Markets, commented on OTP Bank's joining CLSSettlement, stating, "Joining CLSSettlement reinforces our commitment to FX risk mitigation and operational efficiency. We are excited to leverage the proven PvP technology and multilateral netting to enhance our liquidity management for sustained growth."
Lisa Danino-Lewis, Chief Growth Officer at CLS, also commented on OTP Bank's decision, saying, "OTP Bank's decision to become a settlement member underscores the growing appetite among financial institutions to adopt PvP settlement solutions. We are thrilled to welcome OTP Bank to our trusted network delivering global liquidity benefits through CLSSettlement."
In summary, OTP Bank’s joining CLSSettlement boosts both its FX settlement risk mitigation capabilities and operational efficiencies via proven PvP technology and multilateral netting, reflecting industry best practices and enhancing liquidity management for sustained growth.
[1] https://www.clstl.com/about-us [2] https://www.otpbank.hu/en/ [3] https://www.bloomberg.com/news/articles/2025-06-01/otp-bank-joins-clssettlement-as-settlement-member [4] https://www.clstl.com/products/clssettlement/how-it-works
- OTP Bank, having joined CLSSettlement, will gain access to payment-versus-payment (PvP) settlement, which is widely utilized in the finance and banking-and-insurance industries to mitigate foreign exchange (FX) settlement risk.
- With its membership in CLSSettlement, ffnews.com reports that OTP Bank aims to improve its operational efficiency by adopting the globally recognized standard for FX settlement risk management, thereby strengthening its position in the industry.
