As FX trading faces the dual pressures of shortening settlement timelines and expanding volumes across a wider array of currency pairs, addressing FX settlement risk (also called Herstatt Risk) is becoming increasingly critical. In this special feature on FX Settlement Risk, OSTTRA provides expert insights to e-Forex on the industry’s challenges, the path towards collaborative solutions and increasing the adoption of Payment versus Payment (PvP) settlement mechanisms.
Featured topics include:
- FX Settlement Risk: Determining the scale of the problem and taking steps to address it
Basu Choudhury, head of partnerships and alliances at OSTTRA, shares insights into the growth in FX trading outside of traditional PvP services, and discusses the need for solutions that not only mitigate settlement risk but also provide value.
- Service spotlight: OSTTRA solutions at the heart of the global FX post-trade community
We highlight the benefits of OSTTRA PvP Settlement Orchestration for market participants.
- What can be done to increase the appeal and adoption of PvP?
This article explains why the industry needs alternative PvP models, supporting bilateral settlement and offering more flexibility in terms of settlement times, regardless of where the market participant is based.
- Bright ideas, the promise of new technology and prospects for the future
We discuss why the issue lies not in the technology itself, but in the need for adapted models and shared transparency to manage settlement risk arising from recent non-bank growth, with the future relying on distributed data and collaborative workflows that provide transparency and a shared golden record.
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 Basu Choudhury, OSTTRA 
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