In an interview with e-Forex magazine, OSTTRA’s Head of FX, Keith Tippell, outlines why settlement risk represents a material risk today due to the ever-increasing traded volume in currencies which are not supported by Payment-versus-Payment (PvP).
On Underserved Markets
“Asian currencies such as the Chinese renminbi and Thai baht, alongside Eastern European and Middle Eastern currencies, are typically cited as the most underserved by existing PvP solutions. All these are part of the roadmap for OSTTRA PvP Settlement Orchestration.”
The Path Forward
“A well-adopted PvP service for the six to ten largest deliverable currencies, which currently do not benefit from PvP protection, would mitigate the vast majority of the current market FX settlement risk.”
Read the full publication extract (PDF)