Handbook of Key Global Financial Markets, Institutions, and Infrastructure

Chapter 46

Global Payment and Settlement Systems

B. Geva

York University, Toronto, ON, Canada

Outline

Introduction

Foreign Exchange Transactions

Payment System Risk

The Failure to Complete Settlement on Participant’s Default

Conclusion

Further Reading

Introduction

By reference to a given currency, domestic payments take place between a payer and payee within the country that adopted that currency. International payments consist of outgoing and incoming payments in that currency out of and into that country, as well as offshore payments in that currency, between two parties outside that country. Broadly speaking then, a national or domestic payment system refers to an entire scheme consisting of institutions, arrangements, and rules facilitating ...