What Is Settlement Risk in FX

question 167

Multiple Choice

What is settlement risk in FX?

• A) The risk of failure of a payments or settlement system
• B) The risk that only one side of an exchange of currencies will be made
• C) The risk of payments 'gridlock' in a real-time gross settlement system
• D) The risk that default by a counterparty before the value date means you have to replace the defaulted deal at a worse rate

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