Herstatt risk

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Revision as of 12:36, 17 August 2013 by imported>Doug Williamson (Made definition explicit, rather than just a See also.)
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Continuous linked settlement

Foreign exchange settlement risk caused by delays arising from time-zone differences.

Named after Herstatt Bank, which went into compulsory liquidation in 1974, having received funds but not paid out under a number of significant intra-day cross-border transactions.


See also