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BIS: Macroprudential Policies For Addressing Climate-Related Financial Risks: Challenges And Trade-Offs
Date 04/04/2023
Highlights
- Macroprudential policies aim to maintain financial stability by increasing the resilience of the financial system (together with the microprudental framework) and containing the accumulation of systemic risks.
- Standard macroprudential instruments (such as capital add-ons on specific exposures) may not always contribute to these objectives when deployed to address the systemic implications of climate-related financial risks, as they could exacerbate transition risks.
- In order to mitigate these potential side effects, authorities need to carefully define the scope of application of such macroprudential policies.
- While overcoming these challenges is an operationally complex task, failure to do so may render such macroprudential policies ineffective and potentially counterproductive for financial stability.
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SEC Charges Founder Of Frank With Fraud In Connection With $175 Million Sale Of Student Loan Assistance Company
Date 04/04/2023
The Securities and Exchange Commission today charged Charlie Javice, the founder of the now shuttered student loan assistance company previously known as Frank, with fraud in connection with the $175 million sale of the company to JPMorgan Chase Bank, N.A., (JPMC) in 2021. The SEC’s complaint alleges that Javice orchestrated a scheme to deceive JPMC into believing that Frank had access to valuable data on 4.25 million students who used Frank’s service when in reality the number was less than 300,000.
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Purdue University/CME Group Ag Economy Barometer: Commodity Price Outlook And Interest Rate Concerns Cloud Farmer Sentiment
Date 04/04/2023
Farmer sentiment weakened again in March as the
Purdue University /CME Group Ag Economy Barometer fell 8 points to a reading of 117. Both of the barometer's sub-indices declined 8 points in March, leaving the Current Conditions Index at 126 and the Future Expectations Index at 113. The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers' responses to a telephone survey. This month's survey was conducted betweenMarch 13-17 , which coincided with the demise ofSilicon Valley Bank and Signature Bank. -
OCC Clears Over 1B Total Contracts In March 2023, Highest Month On Record And Up 12.2% Year-Over-Year
Date 04/04/2023
OCC, the world's largest equity derivatives clearing organization, announced today that year-to-date average daily volume through March 2023 was 46.3 million contracts, up 8.4 percent compared to year-to-date average daily volume through March 2022. Total volume was 1.1 billion contracts, up 12.2 percent compared to March 2022. March 2023 was the highest total volume month in OCC’s history and the first time cleared contract volume surpassed 1 billion contracts in a single month.
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Inflation Persistence And Monetary Policy − Speech By Huw Pill, Bank Of England, Chief Economist And Executive Director, Monetary Analysis, ICMB Lecture, Graduate Institute, Geneva
Date 04/04/2023
In this speech Huw Pill discusses the outlook for the economy, including how lower energy prices might push down on inflation in the short term, but could also boost demand and therefore impact inflation in the medium term. He stresses that the MPC must continue to monitor how these external shocks to inflation might become embedded in the economy, and therefore risk persistently high domestically driven inflation. He goes into detail about the Monetary Policy Committee’s role in controlling inflation, and the potential impact of its recent significant increases to interest rates. He outlines how the Monetary Policy Committee carefully assesses the impact of interest rate rises that have yet to feed through, with the need to address current inflationary pressures.
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Eventus Appoints Jonathan Dixon As Director Of Regulatory Affairs, EMEA & MENA
Date 04/04/2023
Eventus, a global provider of multi-asset class trade surveillance and market risk solutions, has appointed Jonathan Dixon as Director of Regulatory Affairs, EMEA & MENA, where he will work closely with clients and industry bodies to champion regulatory effectiveness to protect them from market malfeasance.
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UK Prudential Regulation Authority Censures Wyelands Bank Plc For Breaching Large Exposure Limits And Failings In Its Governance, Controls And Risk Management
Date 04/04/2023
The Prudential Regulation Authority (PRA) has censured Wyelands Bank Plc (Wyelands) for wide-ranging significant regulatory failings between 21 December 2016 and 28 May 2020, which spanned breaches relating to large exposure limits, capital reporting, governance and risk controls and PRA Own Initiative Requirements (OIREQs) and poor retention of WhatsApp messages. This is the first time the PRA has taken action against a firm for breaches of large exposure limits and found a breach of PRA Fundamental Rule 3 (requiring a firm to act in a prudent manner). The seriousness of the breaches justifies a substantial fine of £8,515,000. However, Wyelands is in wind down and the PRA accepted that it has very limited financial resources. The PRA has concluded that fining Wyelands would not advance its general objective to promote the safety and soundness of firms.
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ESMA Publishes Latest Edition Of Its Newsletter
Date 04/04/2023
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published its latest edition of its Spotlight on Markets Newsletter.
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CME Group Reports Second-Highest March And Quarterly ADV On Record
Date 04/04/2023
- 24% ADV Growth in March 2023 and 4% Rise in Q1
- Record Interest Rate ADV in Q1
- Record SOFR futures and options ADV, OI in March and Q1
- Record Options ADV in March and Q1
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ACER To Amend The Harmonised Allocation Rules For Long-Term Electricity Transmission Rights
Date 04/04/2023
On 1 March 2023, Transmission System Operators (TSOs) submitted to ACER their proposal for amendments to the Harmonised Allocation Rules (HAR) for long-term electricity transmission rights.
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