BBA has responded to the Basel Committee’s consultation on supervisory guidance for managing settlement risk in foreign exchange transactions. BBA supports trading limits, as corroborated by banks’ adoption of in-house restrictions, but also notes large exposure limits already exist in many jurisdictions. Regarding legal risk, BBA says that obtaining legal opinions on enforceability of settlement netting is of lesser importance when compared with those on close-out netting, which are the ones required so far by market practice. (Source: BBA Response on Forex Settlement Risk)