Bank Of England's Leigh-Pemberton Sounds Disapproving Note On Netting

BANKS

A speech by Bank of England governor Robin Leigh-Pemberton last week to the 12th Payment Systems International Conference gave reason for doubt that the Bank looks favorably on the proposed European Clearing House Organization (Echo). In his address, Leigh-Pemberton says that legal problems associated with netting make it a poor solution to settlement risks in foreign exchange and other payments: "real-time gross settlement is the way forward," he contends.

Echo, the consortium of European ba