More work needed on settlement risk

A survey of 109 institutions carried out by the Bank for International Settlement's Committee on Payment and Settlement Systems (CPSS), released last week, found that a comprehensive long-term strategy endorsed by the G-10 central banks in 1996 to reduce the systemic risk arising from the way FX trades were settled has been highly successful.

In particular, 55% of forex obligations are now settled using CLS Bank on a payment versus payment (PvP) basis. Before CLS Bank was established, 85% of

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