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.
- A comprehensive historical account of the Herstatt crisis by Emmanuel Mourlon-Druol is available here.
‘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).''