As already noted, the value of foreign exchange deals that are now being settled is so substantial that the resulting settlement risks can be of a size to cause systemic concern for both national and international financial systems. This risk, mentioned earlier in my presentation, is often referred to as Herstatt risk.
As in New Zealand, much international attention is currently being focused on this problem. Co-operation amongst supervisors My final comments on the response of regulators to global financial trends concern the co-operation among supervisors and international agencies to address the potential for systemic disruption.