Standard Chartered has started using CLSNet, joining the top dozen global banks on the foreign exchange (FX) payment netting platform as Asian financial institutions increasingly look to cut settlement risk in emerging market currencies.

StanChart Joins CLSNet as Asian Banks Expand Risk Management

The cross-border bank went live on the service alongside CTBC, the Hong Kong branch of a Taiwanese lender. Two other Asian banks – Malaysia's Maybank and Taiwan's Taishin – have signed up to join the network, according to CLS, the financial market infrastructure company that operates the platform.

CLSNet automates the calculation of bilateral payment netting across more than 120 currencies, including emerging market currencies and same-day trades that don't go through CLS's main settlement system. The service averaged $169 billion in daily netted value during the first half of 2025, an 18% jump from the same period last year.

• Standard Chartered, DCS Bring Stablecoin Payments to Everyday Purchases in Singapore
• This Megabank Doubles Down on Crypto with EU Hub Launch
• Standard Chartered Sets Up Digital Asset Custody Services in UAE

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

The move comes at a time when the global FX trading volumes jumped almost 30% to $9.6 trillion daily, mainly due to the soar in derivatives activity, finds the newest survey conducted by the Bank of International Settlements.

Settlement Risk Drives Asian Adoption

The uptick in Asian bank participation comes as settlement risk in foreign exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term transactions remains a concern, particularly for emerging market and developing economy currencies. Market participants are under pressure to follow best practices outlined in Principle 35 of the FX Global Code, which encourages automated netting systems where payment-versus-payment settlement isn't available.

The new Asian members are focused on reducing exposure in currency pairs like USD/CNH, according to CLS. Tony Hall, global head of markets trading and XVA at Standard Chartered, said the move fits with the bank's push to strengthen its position in emerging markets FX.

“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,” Hall said.

Broadening Membership Base

CLSNet's community has expanded beyond the largest global banks to include regional lenders, funds, corporates and non-bank financial institutions. Last year, BNY Mellon and ING joined the platform, which had seen its daily netted notional value consistently exceed $115 billion over a 12-month period.

CLS has also been adding leadership with market infrastructure experience as it grows its services beyond core settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term. Former Euroclear CEO Brigitte Daurelle joined the company's board of directors earlier this year as an independent director.

The platform centralizes and standardizes post-trade matching and netting, cutting down on the number of payments exposed to settlement risk. CLS was created by major banks in the late 1990s to reduce counterparty risk in the FX market.