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Unsettling: the increase of foreign exchange without settlement risk mitigation

Article
Article
15 Min Read
Date
24 July 2020
Author
Marc Bayle de Jessé
Chief Executive Officer
Publication

FX settlement risk is on the rise.

The Bank for International Settlements’ Quarterly Review (December 2019) suggests that FX settlement risk is on the rise. Further, and of note, FX settlement risk is growing in currencies not eligible for settlement in CLS.

We believe now is the time to address and reverse the build-up of FX settlement risk. Without immediate action, FX settlement risk will continue to accumulate and, in parallel, so will the risk to the global financial system. The regulatory community and industry must join forces to reverse the expansion of FX settlement risk before it can inflict damage to markets and the economy more broadly

Marc Bayle de Jessé shares his insights on the rise of settlement risk and what CLS, and the wider industry, can do together to address this growing risk in e-Forex's FX Settlement Risk supplement.

Marc Bayle de Jessé shared his insights on the rise of settlement risk and what the industry can do together to address this growing risk at this year's Central Bank Payments conference.

Read the eForex supplement on FX settlement risk.

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