News Centre

BIS: The Treasury Market In Spring 2020 And The Response Of The Federal Reserve

Date 19/10/2021

Focus

In March 2020, as the Covid-19 crisis intensified, stress emerged in the market for Treasury securities. During the period 9–18 March, the 10-year yield surged sharply by 64 basis points while the stock market kept falling. This is contrary to typical risk-off events which are characterised by a simultaneous drop in equity prices and long-term yields. In response to these developments, on 15 March 2020 the Board of Governors of the Federal Reserve System (the Fed) unveiled a new programme to buy large amounts of Treasuries. Purchases exceeded $1 trillion in Q1 2020. This paper seeks to provide new facts and analysis to improve understanding of the episode.

FSB Calls For Greater Convergence In Cyber Incident Reporting

Date 19/10/2021

The Financial Stability Board (FSB) today published a report on existing approaches to cyber incident reporting and next steps for broader convergence.

FSB Appoints New Chairs To Key Committees

Date 19/10/2021

The Financial Stability Board, at its Plenary virtual meeting on 18 October, appointed the chairs of two of its Standing Committees and the Resolution Steering Group, following the completion of the previous chairs’ terms:

BIS: Joined At The Hip: Monetary And Fiscal Policy In A Liquidity-Dependent World

Date 19/10/2021

Summary

Focus

In a low interest rate environment, financing government operations by issuing bonds is very similar to financing them by issuing bank reserves, ie money. But there remains one key difference: the way their prices are set. The price of money is the inverse of the price level. If prices are sticky, so is the price of money in terms of goods. By contrast, the price of bonds in terms of goods is free to jump all over the place. This difference matters a great deal for a number of monetary and fiscal policy issues.

Destination Italia S.p.A. Lists On AIM Italia

Date 19/10/2021

• Twenty-third listing of 2021 on Borsa Italiana’s AIM Italia

• Destination Italia S.p.A. brings the total number of companies listed on Borsa Italiana’s AIM Italia to 154

• Total placement volume of the offering equal to €3.5 million

ETFGI Reports Record Assets And Net Inflows In Active Etfs World-Wide Of US$418 Billion And US$110 Billion Respectively At End Of September 2021

Date 19/10/2021

ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today record assets and net inflows in Active ETFs world-wide of US$418 billion and US$110 billion respectively at end of September.  Actively managed ETFs and ETPs saw net inflows of US$14.68 billion during September, bringing year-to-date net inflows to US$109.93 billion. Assets invested in actively managed ETFs/ETPs finished the month up to 1.1%, from US$413 billion at the end of August to US$418 billion, according to ETFGI's September 2021 Active ETF and ETP industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)

LSEG Backs TPI Global Climate Transition Centre To Dramatically Scale Climate Assessments Of Companies

Date 19/10/2021

• LSEG backed TPI Global Climate Transition Centre will dramatically increase the independent assessment of companies from 400 today to 10,000 and expand TPIs coverage from global equities into other asset classes such as fixed income
• Climate assessment reports will be free and publicly available 
• Set to launch in early 2022, the Centre builds on LSEG’s existing relationship with the Transition Pathway Initiative (TPI) and provides an important contribution to the sustainable finance architecture beyond Cop26

Moscow Exchange: Risk Parameters Change For The Securities

Date 19/10/2021

The following risk parameters will be changed:

BIS: Indebted Demand

Date 19/10/2021

Focus

Rising debt and falling interest rates have characterised advanced economies over the past 40 years. The average real interest rate dropped from 6% in 1980 to less than zero in 2019. Meanwhile, the average debt to GDP ratio almost doubled from 139% in 1980 to over 270% in 2019. The economic fallout of the Covid-19 health crisis is likely to accelerate these patterns going forward, as governments pursue aggressive debt-financed stimulus policies. The objective of this paper is to understand how the twin phenomena of high debt and low interest rates came to be.

Enhancing Equity Market Competition, SEC Commissioner Elad L. Roisman, Oct. 15, 2021

Date 19/10/2021

Thank you, Rich [Repetto] for that kind introduction.  Before I begin, let me give my standard disclaimer that the views I express today are my own and do not represent those of the Commission or my fellow Commissioners.