The Settlement Risk in Foreign Exchange Transactions report (the Report)1 prepared by the Committee on Payment and Settlement Systems of the Central Banks of the Group of Ten Countries is a landmark in the history of the quest to reduce settlement risk. It is a summary of the studies and efforts to address the problem since the Bankhaus Herstatt collapsed in 1974 but, most importantly, it is a manifestation of the will and consensus of the central banks to take, or encourage, dramatic steps in the next two to three years that will make anything that has taken place in the past two decades look insignificant in comparison.