Herstatt risk

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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

Other links

  • A comprehensive historical account of the Herstatt crisis by Emmanuel Mourlon-Druol is available here[1].

‘Trust is good, control is better': The 1974 Herstatt Bank Crisis and its Implications for International Regulatory Reform, Emmanuel Mourlon-Druol,

Business History, Vol. 57, Iss. 2, 2015, ISSN 0007-6791 (Print), 1743-7938 (Online).''