| MEMBERS OF THE STEERING GROUP |
| 1. | Executive summary |
| 1.1 | Introduction |
| | 1.1.1 | Central bank concerns |
| | 1.1.2 | G-10 initiatives to address concerns |
| 1.2 | Summary of strategy |
| 2. | OVERVIEW OF FOREIGN EXCHANGE SETTLEMENT RISK |
| 2.1 | Types of risk |
| 2.2 | Factors leading to central bank concerns |
| | 2.2.1 | The failure of Bankhaus Herstatt (1974) |
| | 2.2.2 | Drexel Burnham Lambert (1990) |
| | 2.2.3 | BCCI (1991) |
| | 2.2.4 | The attempted Soviet coup d'état (1991) |
| | 2.2.5 | The Barings crisis (1995) |
| 2.3 | Defining and measuring foreign exchange settlement exposure |
| 3. | MARKET SURVEY |
| 3.1 | Duration of foreign exchange settlement exposures |
| 3.2 | Size of foreign exchange settlement exposures |
| 3.3 | Potential impact of changing practices |
| | 3.3.1 | Payment cancellation and receipt identification |
| | 3.3.2 | Netting |
| 3.4 | Market responses and initiatives |
| | 3.4.1 | Individual bank level |
| | 3.4.2 | Industry group level |
| 4. | DESCRIPTION OF STRATEGY |
| 4.1 | Action by individual banks to control their foreign exchange settlement exposures |
| | 4.1.1 | Description of recommended action |
| | 4.1.2 | Central bank policy perspective |
| 4.2 | Action by industry groups to provide risk-reducing multi-currency services |
| | 4.2.1 | Description of recommended action |
| | 4.2.2 | Central bank policy perspective |
| 4.3 | Action by central banks to induce rapid private sector progress |
| | 4.3.1 | Description of recommended action |
| | 4.3.2 | Central bank policy perspective |
| 5. | NEXT STEPS |
| APPENDIX 1: | Defining and measuring foreign exchange settlement exposure |
| APPENDIX 2: | The New York Foreign Exchange Committee's
Summary of Recommendations for Private Sector Best Practices |
| APPENDIX 3: | The CPSS market survey |
| APPENDIX 4: | Glossary |
