Settlement risk

Wells Fargo and HSBC Expand DLT Solution to Include Offshore Yuan

Retrieved on: 
Thursday, November 17, 2022

Wells Fargo & Company (NYSE: WFC) and HSBC Bank plc today announced that the blockchain-based solution they are using for bilateral FX settlements is expanding to include the offshore yuan (CNH).

Key Points: 
  • Wells Fargo & Company (NYSE: WFC) and HSBC Bank plc today announced that the blockchain-based solution they are using for bilateral FX settlements is expanding to include the offshore yuan (CNH).
  • Since launching the shared DLT solution in December 2021, HSBC and Wells Fargo have settled over $200 billion in transactions and plan to add additional currencies over the coming months.
  • View the full release here: https://www.businesswire.com/news/home/20221117005149/en/
    Vince Hindman, global head of Rates and FX Solutions, Wells Fargo (Photo: Wells Fargo)
    We are pleased to expand the capabilities of the platform to include CNH, allowing us to reduce risk in the payment settlement process, said Vince Hindman, global head of Rates and FX Solutions, Wells Fargo Corporate & Investment Bank.
  • With assets of US$2,985bn at 30 June 2022, HSBC is one of the worlds largest banking and financial services organisations.

LMRKTS Completes Second Turkish Lira Settlement Risk Compression

Retrieved on: 
Monday, July 13, 2020

NEW YORK and LONDON, July 13, 2020 /PRNewswire/ --LMRKTS, a leading provider of optimization and compression services, announces today the addition of a new Turkish lira settlement risk compression service to its suite of offerings.

Key Points: 
  • NEW YORK and LONDON, July 13, 2020 /PRNewswire/ --LMRKTS, a leading provider of optimization and compression services, announces today the addition of a new Turkish lira settlement risk compression service to its suite of offerings.
  • Turkish lira forwards are not currently cleared and subject to both foreign exchange and interest rate volatility.They impact an institution's settlement risk and can also add to credit and capital costs.
  • "Unforeseeable geopolitical developments can quickly change the risks faced by large currency players," said Andrea Ianniello, President and Chief Commercial Officer of LMRKTS.
  • "Recent heightened concern around settling Turkish lira obligations is a good example.

LMRKTS Completes Second Turkish Lira Settlement Risk Compression

Retrieved on: 
Monday, July 13, 2020

NEW YORK and LONDON, July 13, 2020 /PRNewswire/ --LMRKTS, a leading provider of optimization and compression services, announces today the addition of a new Turkish lira settlement risk compression service to its suite of offerings.

Key Points: 
  • NEW YORK and LONDON, July 13, 2020 /PRNewswire/ --LMRKTS, a leading provider of optimization and compression services, announces today the addition of a new Turkish lira settlement risk compression service to its suite of offerings.
  • Turkish lira forwards are not currently cleared and subject to both foreign exchange and interest rate volatility.They impact an institution's settlement risk and can also add to credit and capital costs.
  • "Unforeseeable geopolitical developments can quickly change the risks faced by large currency players," said Andrea Ianniello, President and Chief Commercial Officer of LMRKTS.
  • "Recent heightened concern around settling Turkish lira obligations is a good example.

Crypto Garage Launches the Commercial Service of "SETTLENET," a Settlement Platform for the Crypto Asset OTC Market

Retrieved on: 
Wednesday, June 10, 2020

Crypto Garage has been working with market participants and regulators on a demo version of "SETTLENET" under the Government of Japan's regulatory sandbox scheme since January 2019.

Key Points: 
  • Crypto Garage has been working with market participants and regulators on a demo version of "SETTLENET" under the Government of Japan's regulatory sandbox scheme since January 2019.
  • Normally, in the OTC crypto market, the delivery of the traded crypto asset and the fiat currency that is used for the settlement price of the crypto asset are carried out by separate means after the transaction is concluded, and settlement risk exists with the counterparty.
  • Using a third party clearinghouse addresses such settlement risk, where the counterparties deposit assets to the clearinghouse for simultaneous delivery and settlement of the digital asset.
  • This setup is extremely difficult to achieve a unified clearinghouse, where market participants around the world are equally trusted.