Settlement and credit risk due to difficulty in procuring foreign currency
First written in FY2021. 1 of 2 entries say "Mitigated", first in FY2022. Latest entry: FY2022.
No other company in this theme has enough history to compare yet.
- FY2022MitigatedAnnual report
「Our Group sells foreign-currency-denominated securities to customers and trades them for its own account. To secure liquidity in the foreign currencies used as settlement currencies, we maintain trading lines with multiple banks that handle foreign exchange transactions.」
The Company explicitly states that it secures liquidity by maintaining trading lines with multiple banks to address the risks of settlement delays and damage to credit caused by difficulty procuring foreign currencies. - FY2021First statedAnnual report
「However, if foreign currencies become difficult to procure due to turmoil in the foreign exchange market or other factors, and we consequently become unable to complete settlement, this could damage our credit with settlement counterparties or result in monetary losses due to settlement delays, potentially affecting our Group's operating results and financial position.」
A new separate disclosure covers settlement delays, damage to credit and monetary losses that may arise if the foreign currency required to settle foreign-currency-denominated securities transactions cannot be procured.