Settlement risk in foreign exchange transactions has increased by more than 15% since 2019, according to new research from the Bank for International Settlements, with $2.2 trillion of daily FX turnover not subject to any risk mitigation.
New studies from the BIS also show a further decline in market share on primary spot venues, increasing internationalisation of emerging market currencies and a rise in “unseen” FX swap dollar notionals.
Settlement risk has been in the crosshairs of regulators since the BIS’s 2019 triennial FX survey found it was on the rise. A report in the BIS…
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