StanChart Headlines Asian Push onto CLSNet

Standard Chartered has gone live on CLSNet, CLS’ automated bilateral payment netting calculation service for over 120 currencies, alongside several Asian banks.

CLSNet standardises and automates post-trade matching and netting processes for currency flows outside of the main CLS Settlement service, specifically in emerging market and developing economy currencies as well as same-day trades.

CLS says adoption of CLSNet has continued to grow significantly, with the service recording an average daily netted value of $169 billion in the first half of 2025, up 18% compared to the same period in 2024. The CLSNet community now includes the top 12 global banks, alongside a growing roster of regional banks, funds, corporates and non-bank financial institutions, it adds.

CLS has been pushing CLSNet as its solution to continued concerns amongst regulators and central banks over settlement risk, specifically, the growing swathe of the FX market that is not settled in a payment-versus-payment (PvP) manner. The latest update to the FX Global Code headlined this issue, along with a number of amendments to the Code’s Principles aimed at encouraging greater use of PvP methods.

Alongside Standard Chartered, CLS says several Asian banks are joining the service. CTBC, the Hong Kong branch of a Taiwanese commercial bank, has gone live on CLSNet, meanwhile Maybank, a Malaysian bank, and Taishin, one of the largest commercial banks in Taiwan, have also committed to joining the CLSNet network to mitigate settlement risk within Asian currencies, particularly USD/CNH.

“We are seeing increased demand for proven solutions to address the challenges facing the FX market,” says Lisa Danino-Lewis, chief growth officer, CLS. “As more participants join CLSNet, the resulting network effect will deliver even greater risk reduction and efficiency benefits for all users.”

Tony Hall, global head, markets trading and XVA at Standard Chartered, adds, “[This reaffirms] our commitment to strong risk management, liquidity efficiency and operational excellence in FX. This step aligns with our role as a signatory to the Global FX Code and our ambition to be the leading emerging markets FX house. By leveraging CLSNet capabilities, we’ll deliver safer, faster and more efficient post-trade processing – freeing up intraday liquidity and reducing settlement risk for our clients.”