BIS FX Settlement Risk Strategy Plan Relies On Private Sector Initiatives
REGULATIONS
The Bank for International Settlement's long-awaited blueprint on settlement risk in foreign exchange transactions shifts the onus to the private sector in finding solutions to so-called Herstatt risk, without endorsing any particular risk reducing multi-currency service.
A tough two-year time frame for the adoption of the three-pronged strategy has been set by Bill McDonough, president of the Federal Reserve and chairman of the G-10 central banks committee on payment and settlement systems.
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