HKMA zeroes in on foreign exchange settlement risk

News

Hong Kong - Since the collapse of Lehman Brothers, regulators are becoming increasingly concerned about counterparty risk. As a high-volume global centre for foreign exchange trading, Hong Kong's forex transactions are the greatest source of settlement risk for registered institutions there. As a result, the Hong Kong Monetary Authority (HKMA) has released new guidelines for firms that deal with forex settlement risk, which are based on recommendations issued by the Bank for International Settle