Today, the Basel Committee issued guidance for managing risks associated with the settlement of foreign exchange transactions. The guidance updates the Basel Committee’s existing supervisory guidance, which was published in 2000.
According to the Basel Committee, while its original 2000 guidance focused mainly on the principal risk element of FX settlement-related risks, the new guidance is intended to address a broader range of FX settlement-related risks. The new guidance provides more comprehensive and detailed direction on governance arrangements and the management of principal risk as well as all other FX settlement-related risks. … Read More