Week InReview | "All must recognise the imperative of avoiding the global liquidity trap. Not to beggar-thyself via beggar-thy-neighbor. Not to obsess over process at the expense of productivity. But by building resilient domestic demand and sustainable cross border capital flows, we in the G20 can redeem an unforgiving world."   Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board, at the 8th Annual Institute of International Finance G20 Conference, Shanghai, 26 February 2016
Friday, March 4, 2016
Let's recap
In case you missed it . . .
Risks from asset management products, activities
FSOC's assessment continues
(Mar 2) During an executive session, the Financial Stability Oversight Council:
  • Voted not to rescind the designation of MetLife
  • Discussed its ongoing assessment of potential risks to U.S. financial stability from asset management products and activities
  • Continued its discussion of regulations, industry practices, and proposed rulemakings that could mitigate such potential risks
Risks, costs of CCP interoperability
ESMA issues final report
(Mar 1) The European Securities and Markets Authority published its final report on systemic risk and cost implications of interoperable arrangements between central clearinghouses. The report:
  • Details how the concept of interoperability has emerged in the EU and the general EU regulatory framework applicable to it
  • Provides a mapping and a description of the current interoperability arrangements between EU CCPs for different product types; i.e., EU equities, EU government bonds and EU exchange-traded derivatives
  • Is being submitted to the EC and is expected to feed into the report on any possible systemic risk and cost implications of interoperability arrangements that the European Commission shall prepare and submit to the European Parliament and the Council
FSB's 2016 agenda
Carney's pre-Shanghai missive to G20
(Feb 27)  The Financial Stability Board (FSB) published a letter from Mark Carney, Chairman of the FSB, sent to G20 Finance Ministers and Central Bank Governors before their meeting in Shanghai on 26-27 February, listing  the FSB's priorities for 2016, which
  1. Support the full and consistent implementation of post crisis reforms, while remaining ready to address any material unintended consequences.
  2. Address new and emerging vulnerabilities in the financial system, including potential risks associated with market-based finance, asset management activities, conduct, correspondent banking and climate change.
  3. Promote robust financial infrastructure, working with the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) to assess policies on central counterparty (CCP) resilience, recovery and resolvability, and recommending any necessary improvements.
    The FSB will also support the objectives of the Chinese G20 Presidency by:
  4. Drawing lessons, working with the International Monetary Fund (IMF) and the Bank for International Settlements (BIS), from the practical application of macroprudential policy frameworks and tools.
  5. Assessing the systemic implications of financial technology innovations, and the systemic risks that may arise from operational disruptions.
Binge reading disorder
Hand-curated, chosen with love
Dog Faces Off Against Boston Dynamics' 'Spot' Robot (video)

Meet Is Murder: They're boring. They're useless. Everyone hates them. So why can't we stop having meetings?

Failure to Lunch: The lamentable rise of desktop dining

The Oscars, Movie Quotes and Finance

The 18 Books Investors Will Be Reading Over Spring Break