G-7 leaders say downside risks growing for global economy; Japan's Abe fails in bid to have G7 warn of global crisis risk | CFTC sets final cross-border swaps margin rule that broadens circumstances in which banks' foreign units must adhere to U.S. collateral requirements | Personal responsibility vital for compliance: SEC official | ICYMI + Binge Reading Disorder
Monday 5/23 FINRA annual conference begins in DC. | Tuesday 5/24 Inaugural RLN meeting in Beijing. | Wednesday 5/25 INVESTORS Members' Monthly Meeting. | Thursday 5/26 G7 leaders summit in Japan. | Friday 5/27 NY Fed to publish Global Code of Conduct for FX market.
NOTABLE QUOTABLE 'An empirical assessment of the price of liquidity will also need to take into account the evolution of the attendant risks. This leads me to the topic of asset managers. Having gained in market presence post-crisis, asset managers and their activities are receiving much more attention because their business models can spur behaviour that amplifies market volatility. This is what we call leverage-like behaviour. Such behaviour sows the seeds of market liquidity risks. 'While dealers are scaling down the provision of market liquidity, asset managers continue to promise redemptions at short notice, thus encouraging their clients' liquidity illusion. As they may not be able to live up to their promises under financial stress, asset managers could exacerbate liquidity shortages at the wrong time. 'Prudential work is under way in this area, involving asset managers and supervisors. The former will need to internalise recent market changes in general and changes to the provision of liquidity services in particular. In turn, supervisors are stepping up the usage of stress tests.' From a speech by Jaime Caruana BIS General Manager Lisbon, Portugal May 10, 2016
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