by David Schwartz J.D. CPA, Executive Director | Aug 26, 2013 | All
While the traditional view of financial innovation emphasizes the risk sharing role of new financial assets, belief disagreements about these assets naturally lead to speculation, which represents a powerful economic force in the opposite direction. Theoretically,...
by David Schwartz J.D. CPA, Executive Director | Aug 21, 2013 | All, Change Overview and Rationale, Formal Regulatory Remedies
In an effort to combat the pro-cyclicality caused by changes in repo and securities lending haircuts during a crisis, the Financial Stability Board has proposed to introduce minimum standards for the calculation of haircuts. In the belief that higher haircuts would...
by David Schwartz J.D. CPA, Executive Director | Aug 19, 2013 | All, Disclosure Regimes, Formal Regulatory Remedies
Given their strict regulatory regime, the use of commodities has long been a sticky subject for mutual funds. At the same time, however, the competitive environment for returns amongst mutual funds has made use of derivatives and commodity interests by registered...
by David Schwartz J.D. CPA, Executive Director | Aug 19, 2013 | All, Change Overview and Rationale
In a globally interconnected marketplace, just how effective can country-by-country regulation really be? According to David Wright, Secretary General of IOSCO, this fragmented regulation from jurisdiction to jurisdiction may be doing more harm than good. The tools...
by David Schwartz J.D. CPA, Executive Director | Aug 19, 2013 | All
The financial crisis revealed weaknesses in the design of the U.S. tri-party repo market that could potentially amplify and propagate systemic risk. Since that time, the New York Federal Reserve Bank has monitored closely the tri-party repo market, and its Treasury...
