Settlement Risk In Currency Markets: Key Insights from the BOE
Wednesday, 18 September 2024, 02:21
Understanding the Impact of Settlement Risk
Settlement risk within currency markets has been flagged as a material issue by the Bank of England. A large number of currency trades confront the danger of failure every day, necessitating close scrutiny and effective management.
Importance of an Industry Code Review
This year, the currency market will witness a pivotal review of its industry code of conduct, aiming to address the crucial concerns surrounding settlement risk. Stakeholders are urged to participate actively in discussions addressing these challenges.
- Potential Failures: High frequency of transactions facing risks.
- Regulatory Guidance: Anticipated updates to best practices.
- Market Reforms: Emphasizing the need for change.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.