Download This PaperReducing Foreign Exchange Settlement Risk
13 Pages Posted: 19 Jul 2012
Date Written: September 1, 2008
Abstract
Much progress has been made in reducing settlement risk in foreign exchange markets, particularly through use of CLS Bank. However, the remaining exposures are sometimes still significantly large and not always well managed, creating the potential for systemic risk. To address this problem, it is particularly important that prudential regulators promote effective management of the risk by market participants.
JEL Classification: G15, G18, G2, G21, G28, G32
Suggested Citation: Suggested Citation
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