BIS: Press release: BCBS and CPSS to issue guidance on foreign exchange settlement risk

Bank for International Settlements

March 17, 2011

The Basel Committee on Banking Supervision (BCBS) and the Committee on Payment and Settlement Systems (CPSS) are establishing a joint working group to revise the BCBS's Supervisory guidance for managing settlement risk in foreign exchange transactions, with the goal of ensuring that financial institutions adequately control their foreign exchange settlement exposures.

The announcement indicates the re-launch of the planned work between central banks and supervisors, which had been postponed with the onset of the financial crisis. This is an important step to ensure that market participants focus on FX settlement and that their exposures are properly controlled.