News Centre

Bank Of England Financial Stability Paper 38: Systemic Risk In Derivatives Markets: A Pilot Study Using CDS Data – Robleh Ali, Nick Vause And Filip Zikes

Date 08/07/2016

​Systemic risk in derivatives markets: a pilot study using CDS data (2.2MB)
Robleh Ali, Nick Vause and Filip Zikes

In this paper, we draw on network analysis and a sample of derivatives data from a trade repository to demonstrate how the systemic importance of derivatives market participants may be measured. As trade repository data become more comprehensively available to authorities, the same measures could be applied more broadly. We consider the importance of market participants both to the smooth functioning of derivatives markets and in terms of their potential contribution to financial distress. In relation to market functioning, we study some measures that take into account only immediate counterparty positions and others that consider the whole counterparty network of positions. In some cases, the network of positions beyond immediate counterparties makes a significant difference to the rank ordering of the systemic importance of institutions. This means it is important for authorities responsible for financial stability to have access to data beyond the counterparty positions of institutions in their own jurisdictions. In relation to financial distress, we highlight the importance of identifying institutions which may contribute to liquidity strains, as increasing collateralisation of counterparty exposures will diminish credit risk but could at times sharply raise demand for liquid assets to post as collateral.

TMX Group Equity Financing Statistics – June 2016

Date 08/07/2016

TMX Group today announced its financing activity on Toronto Stock Exchange and TSX Venture Exchange for June 2016.

Finansinspektionen (FI): Decision Regarding The Countercyclical Buffer Rate

Date 08/07/2016

Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.

Warsaw Stock Exchange Monthly Statistics For June 2016

Date 08/07/2016

Warsaw Stock Exchange Monthly Statistics for June 2016 is now available:

For Main Market Statistics click here

For NewConnect Alternative Market Statistics click here

For Catalyst Bond Market statistics click here

Malawi Stock Exchange Weekly Trading Report - 8 July, 2016

Date 08/07/2016

Click here to download Malawi Stock Exchange's weekly report for the week ending 8th July, 2016.

Warsaw Stock Exchange Amends The ATS Rules As Of 3 July

Date 08/07/2016

• The amendments of the Alternative Trading System Rules implemented the next stage of the NewConnect 2.0 project aimed at improving trading safety and transparency of the market.

• The amendments of the ATS Rules follow the necessary alignment of the regulations within the EU Market Abuse Regulation (MAR).

United Kingdom Parliament Treasury Committee Update: Bank Of England Questioned On Financial Stability Report

Date 08/07/2016

Treasury Committee questions Bank of England executives for bi-annual hearing on Bank's Financial Stability Report.

UK's Financial Conduct Authority Launches Call For Input On Crowdfunding Rules

Date 08/07/2016

The Financial Conduct Authority (FCA) is seeking input on which areas should be considered as part of its upcoming review of the rules surrounding both investment-based and loan-based crowdfunding.

UK Prime Minister Nominates Sir Julian King As European Commissioner

Date 08/07/2016

David Cameron has put forward Sir Julian King as the UK candidate for the next European Commission.

Neptune Sponsors Incorporate Neptune Networks Ltd To Run The Open Standard Utility With A Board Comprising Of Both Banks And Asset Managers

Date 08/07/2016

Neptune, the open standards network for pre-trade indications in bond markets, today announced the formation of a new company, Neptune Networks Ltd, to run the utility.  The board will be comprised of members of the banks and asset managers involved in the collaboration for the past eighteen months. Neptune recognises the importance of joint buy-side and sell-side governance in order to best meet the challenges in the industry.