Yesterday, I participated in the Empire Club of Canada Annual Investment Outlook Luncheon and gave remarks on the Outlook for Risks to Capital Markets. While we look for another year of relatively healthy growth in the global economy, new risks and vulnerabilities have emerged in global capital markets. First, the fragmentation of international regulation is a real concern as it impairs market efficiency, and cross-border capital and investment flows. Second, markets have shown a disturbing trend for liquidity to evaporate in times of stress, when needed the most. Third, stock indices have become more and more … Continue reading
Tag Archives: speeches
This morning I had the pleasure to deliver the keynote address at the Derivatives World Congress organized by American Leaders.
The financial crisis exposed significant weaknesses in the over-the-counter (OTC) derivatives market. In the immediate aftermath of the crisis, the G20 Leaders agreed to improve the integrity of trading, clearing and reporting of OTC derivative transactions. Individual regulators responded—some more quickly than others—to introduce new rules for dealers and clearinghouses. The problem is these reforms were introduced without much coordination among the regulators.
Derivatives traders are unable to execute with foreign counterparties, and clear through offshore … Continue reading