The risk that an expected settlement amount will not be made on time. The establishment of netting systems is a direct consequence of efforts to minimize settlement risk.
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FR: risque de règlement [WPG-1325]
DE: Abwicklungsrisiko [WPG-1325]
... it is necessary to develop common standards for market risks incurred by credit institutions and provide a complementary framework for the supervision of the risks incurred by institutions, in particular market risks, and more especially position risks, counterparty/settlement risks and foreign-exchange risks ...
