Briefings

Archive October 2017

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Week InAdvance: October 30, 2017

Mon Oct 30 IAIS annual conference in Malaysia. | Tue Oct 31 Fed meets on monetary policy. | Wed Nov 1 FOMC rate decision. Data security hearing. | Thu Nov 2 Alternative reference rates roundtable at the NY Fed. Housing finance reform hearing. IMF research conference in DC. | Fri Nov 3 Trilateral Commission meetings in Ottawa & London.

Week InReview: October 27, 2017

The Office of Financial Research introduced two new monitoring tools, the Financial System Vulnerabilities Monitor (FSVM) and the Financial Stress Index (FSI). The FSVM is a heat map of 58 indicators of potential vulnerabilities. It gives early warning signals for further investigation. The FSI, constructed from 33 financial market indicators, is a daily market-based snapshot of stress in global financial markets.

The FSVM and FSI are part of the OFR's quantitative monitoring toolkit. They signal where the OFR needs to investigate potential stresses and vulnerabilities. They conduct those investigations using a broader set of data, qualitative information, and expert analysis.

Director Richard Berner describes in this blog why monitoring financial stability requires tracking both vulnerabilities and stress.
 

Week InAdvance: October 23, 2017

Mon Oct 23 CFTC 25th annual symposium on regulation of international derivatives products. CPMI-IOSCO steering group in Madrid. | Tue Oct 24 House panel insurance hearing. OECD green finance forum. | Wed Oct 25 MSRB board meets. House panels meet on housing finance and Equifax. INVESTORS Cyber Security Council working lunch. | Thu Oct 26 IOSCO LEI committee in Toronto.

Week InReview: October 20, 2017

Things that make you say hmmm... Under European regulations, banks are required to charge explicit prices for research. U.S. regulations will also allow them to charge those prices. However, brokers claim an SEC technicality requires them to register with the agency as an investment adviser in order to sell stand-alone analysis, thus subjecting them to a much stricter level of oversight. "The moves may disappoint investor advocates and some officials at U.S. pension funds because they've been urging the SEC to to go even further. They want the regulator to allow what's happening in Europe to also happen in the U.S. -- a system where investors can easily buy research from one brokerage, while paying another to execute trades." Wall Street Is Said Poised to Get Key SEC Reprieve on MiFID

Week InAdvance: October 16, 2017

Mon Oct 16 NAFTA Round 4 continues. Compliance professionals national conference in DC. DC CyberWeek kicks off. | Tue Oct 17 ESMA conference in Paris. | Wed Oct 18 INVESTORS CMBS Council telecon. Fed issues Beige Book. IOSCO board meets in Madrid. High-level BCBS meeting in Basel. OECD Codes meeting in Paris. Financial stability conference in Berlin. | Thu Oct 19 Muni bond women's forum in Chicago.

Week InReview: October 13, 2017

On Bond Market Liquidity -

"In corporate bonds, the different measures of liquidity tell a mixed story. Record trading volumes and low bid-ask spreads indicate good liquidity, while reduced frequency of block trades suggest more difficulty in moving large blocks of risk. However, these oft-cited measures do not capture the full story. For example, bid-ask spreads have decreased primarily for retail investors, rather than for institutional investors.

"Moreover, measures of trading activity only capture activity that has occurred, not trades foregone by market participants because liquidity was not available or the cost was too high. Liquidity metrics also generally do not convey the reduction in immediately available trading opportunities. Such opportunities have declined as more dealers act as agents, and accordingly customers must wait until the opposite side of the trade has been found. Finally, market participants report that dealer willingness to make markets in size, take on risk, and provide firm quotes have all declined."

- The Treasury report on capital markets deregulation

Week InAdvance: October 9, 2017

Mon Oct 9 Eurogroup in Luxembourg. | Tue Oct 10 CPMI-IOSCO harmonization group in Montreal. IMF-WBG annual meeting kicks off in DC. | Wed Oct 11 SEC meets on Reg S-K. FSB working group in Montreal for UTI/UPI discussion. CFTC chief in the House. NAFTA round 4 in DC. FOMC meeting minutes. | Thu Oct 12 SEC investor advisory panel meets. G20 finmins, central bankers in DC. Bretton Woods Committee in DC. | Fri Oct 13 Boston Fed: "Are Rules Made to Be Broken?"

Week InReview: October 6, 2017

On the Fed's plan to reduce its balance sheet over time - "It seems reasonable to think that the Fed's withdrawal from the agency MBS market will increase volatility and risk premiums. Traders bored by the markets should get excited."

The Fed is going to make interest rate risk great again (sort of)

Week InAdvance: October 2, 2017

Mon Oct 2 IOSCO World Investor Week. Nobel Prize week begins in Stockholm. Ten regulatory events in DC. | Tue Oct 3 Senate hearings on Wells Fargo & international tax reform. Mel Watt in the House. | Wed Oct 4 Basel Committee begins two-day meeting. Senate examines Equifax cyber breach. Jay Clayton in the House. | Thu Oct 5 FINRA advertising regs conference in DC. Former Equifax CEO in the House. | Fri Oct 6 Green Economy Summit in Argentina. | Sat Oct 7 International economic conference in Montreal.

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