The Basel Committee on Banking Supervision has issued an updated guidance for managing settlement risks associated with foreign exchange transactions. The new publication updates the original guidance issued in 2000 and is intended to address a broader range of settlement-related risks. The guidance provides more comprehensive direction on governance arrangements and the management of principal risk as well as all other foreign exchange settlement risks. The updated guidance is structured based on seven specific “guidelines” that address governance, principal risk, replacement cost risk, liquidity risk, operational risk, legal risk and capital for foreign exchange transactions.