CLS Proposes USD/CNH Settlement Session in HK 

Settlement utility CLS is working on launching a PvP settlement session for the offshore Chinese renminbi in addition to its main service to address the “increasing settlement risk associated with non-CLS currencies,” a spokesperson for the company told The Full FX.

The proposed settlement session is planned to take place in Hong Kong and it would deliver the settlement risk mitigation benefits and multilateral netting efficiencies associated with CLSSettlement. The plans have been developed following engagement with members and the wider market and it would tackle one of the fastest growing segments of the currently out-of-scope market, the Chinese renminbi, or CNH.

CLSSettlement currently settles payment instructions in 18 of the most traded currencies, with 75 members and more than 38,000 indirect participants. The launch date is unconfirmed, as any implementation of the new service is subject to regulatory approvals as well as non-objection processes across multiple jurisdictions. On top of that, CLS members have to be ready. 

“Following engagement with members and the wider market, CLS has agreed to focus its efforts on the development of a dedicated USD/CNH PvP settlement session, which would be separate from, and in addition to, the main settlement session,” a CLS spokesperson said. “This effort is to address the increasing settlement risk associated with non-CLSSettlement currencies, particularly the Chinese renminbi, alongside continued growth in volumes in the USD/CNH currency pair.”

The renminbi has doubled its share of traded currencies in the six years to 2025, according to the BIS Triennial FX Survey, hitting 8.8% and becoming the fifth most actively traded currency. USD/CNH has also become the third largest currency corridor in the world with 8.1% of the total FX turnover, following USD/EUR and USD/JPY, with 21.2% and 14.3% of market share, respectively.