BIS FX Settlement Risk Strategy Plan Relies On Private Sector Initiatives


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.