CLS Group flags rising demand for FX post-trade infrastructure in Asia

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Asia FX post-trade demand

Highlights

South Korea is liberalizing the won, extending offshore trading hours, and encouraging local bank operations to support potential reclassification from emerging to developed market status.
Asian FX trading activity is rising, with the renminbi's global FX turnover share reaching 8.8% in April 2025 from about 7% three years earlier according to BIS data.
CLSNet's average daily netted values reached $183 billion in H1 2026, up 8% year on year, driven by increased Asian currency trading and broader service adoption.

South Korea reforms and regional market opening

As reported by CLS Group, regulators and market operators across Asia are updating foreign exchange frameworks to attract overseas investors while preserving domestic policy control. The region combines deep liquidity and strong economic growth with varied regulatory regimes, prompting a broader push to modernize settlement and operational infrastructure.

South Korea is emerging as a key example of that transition. Although the country has become a G20 economy, limits on foreign exchange accessibility have kept it classified as an emerging market in major global indices, a designation that can influence how global funds allocate investment.

To support a possible reclassification, South Korea is liberalizing the won and extending trading access for offshore participants. The reforms include longer trading hours and new arrangements designed to remove barriers long cited by international investors, while banks are also expanding local operations in Seoul to support activity in the market.

CLS says the won has been live in its settlement system since 2003 and that member banks are continuing to onboard the currency for settlement activity. United Overseas Bank, a Singapore-based settlement member, is now onboarding KRW, extending settlement risk mitigation to both its onshore and offshore business.

Settlement demand rises with Asian FX activity

Broader growth in Asian currency trading is reinforcing demand for standardized post-trade services. CLSNet data shows sustained gains in activity across Asian currencies, especially offshore renminbi, while the Bank for International Settlements' latest Triennial Survey says the renminbi accounts for 8.8% of global FX turnover in April 2025, up from about 7% three years earlier.

CLS says adoption of its post-trade services in the region is increasing as market participants look to reduce settlement risk and improve liquidity management. Standard Chartered has recently gone live on CLSNet, while Maybank, CTBC Bank Hong Kong and Taishin Bank have committed to join the bilateral payment netting calculation service.

In H1 2026, CLSNet records average daily netted values of U.S.$183 billion, up 8% year on year from H1 2025. The company says the increase is driven by broader participation and heavier trading in Asian currencies, particularly USD/CNH, as direct trading against CNH becomes more common in markets including South Korea.

That trend is sharpening the case for automated post-trade infrastructure across a fragmented regional market. As participation widens and liquidity becomes more interconnected, firms are seeking tools that support operational resilience, risk mitigation and safer scaling across Asia's foreign exchange markets.

In our earlier article on South Korea’s Q3 stock-market slump, we explained how the Kospi turned into the worst-performing major index of the quarter after a crowded AI-linked trade unwound and memory-chip shares reversed sharply. We also noted that higher global bond yields and a tighter domestic rate backdrop were weighing on risk appetite, even as valuations for Samsung Electronics and SK Hynix looked cheaper after the sell-off.

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