A Bank of International Settlements (BIS) working group will look at settlement problems in the over-the-counter derivatives market, in an effort to deal with delays in trade processing.The BIS Committee on Payment and Settlement Systems, composed of major central banks, said that the group would include committee members and representatives of derivatives watchdogs. Since the BIS last reported on OTC derivative settlement in 1998, the notional size of the market has more than tripled, and delays in settlement have attracted increasing criticism from regulators. The group's report is due in the first half of 2007.
More on Settlement Risk
RMB volumes set for growth but settlement remains an issue
Working with banks and CCPs to facilitate central clearing of OTC forex options is 'high priority strategic initiative' for CLS this year, says chief executive David Puth
Divide and rule
Speaking at the FX Invest West Coast conference, the New York Fed's Jeanmarie Davis addressed the challenges associated with clearing and settlement of forex options
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.