BIS Report Issues Policies For Managing FX Settlement Risk

SETTLEMENTS

BASEL--While the foreign exchange markets are looking to shorten foreign exchange settlement cycles and clearing mechanisms like CLS, the Basel Committee on Banking Supervision has turned its attention to establishing a best-practices framework that is expected to help banks internally identify and manage settlement risk associated with foreign exchange trading.

According to the best practices framework, which was published by the Bank for International Settlement (BIS) earlier this summer, b