Sign In
- Home
- Share Prices
- AQSE Share Prices
- Euronext
- US Share Prices
- Stock Tips
- Share Chat
- FX
- News & RNS
- Media
- Trading Brokers
- Finance Tools
- Members
Latest Share Chat
Herstatt Risk
Definition of 'Herstatt Risk'
In 1974 the German bank Herstatt was closed by the Bundesbank. It had entered into forex transactions and received deutschmarks from counterparties in European time, but had not made the corresponding transfer of US dollars to its counterparties in New York time.
It is the risk that arises when forex transactions are settled in different time zones.
Follow the stocks
