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Category Archives: Financial System

Implementation monitoring of PFMIs: Level 2 assessment report for central counterparties and trade repositories – United States

“The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) continue to closely monitor the implementation of the Principles for financial market infrastructures (PFMI). The principles within the PFMI (the Principles) set expectations for the design and operation of key financial market infrastructures to enhance their safety and efficiency and more broadly, to limit systemic risk and foster transparency and financial stability. This report represents a “Level 2″ assessment of the regulatory or oversight framework applied to systemically important central counterparties (CCPs) and trade repositories (TRs) in the United States. Level 2 assessments are peer-reviews that examine whether, and to what degree, the content of the legal and regulatory or oversight framework is complete and consistent with the Principles. The United States has adopted a rules-based approach for implementing the Principles for both CCPs and TRs. An assessment of these rules found that domestic authorities have made good progress towards completely and consistently implementing the majority of the Principles applicable to systemically important CCPs, while implementation for TRs has been more limited. Recommendations are noted where the assessment has identified gaps or shortcomings between implementation measures and the Principles.The assessment reflects the status of the legal, regulatory and policy frameworks in the United States as at 18 April 2014. Level 2 assessment reports for the European Union and Japan have also been published concurrently with this report, and are available on the CPMI and IOSCO websites.”

Public quantitative disclosure standards for central counterparties

Public quantitative disclosure standards for central counterparties: “To help ensure that the risks of using central counterparties (CCPs) are properly understood, CCPs need to make relevant information publicly available, as stated in the CPSS-IOSCO Principles for financial market infrastructures, published in April 2012. The CPSS and IOSCO published a Disclosure framework in December 2012 toContinue Reading

Financial Audit: U.S. Government’s Fiscal Years 2014 and 2013 Consolidated Financial Statements

Financial Audit: U.S. Government’s Fiscal Years 2014 and 2013 Consolidated Financial Statements, GAO-15-341R: Published: Feb 26, 2015. Publicly Released: Feb 26, 2015. “To operate as effectively and efficiently as possible and to make difficult decisions to address the federal government’s fiscal challenges, Congress, the administration, and federal managers must have ready access to reliable andContinue Reading

New GAO Reports – Defense Logistics, Defense Major Automated Information Systems, DHS, FAA, Private Pensions, Transportation Safety

Defense Logistics: Improvements Needed to Accurately Assess the Performance of DOD’s Materiel Distribution Pipeline, GAO-15-226: Published: Feb 26, 2015. Publicly Released: Feb 26, 2015. Defense Major Automated Information Systems: Cost and Schedule Commitments Need to Be Established Earlier, GAO-15-282: Published: Feb 26, 2015. Publicly Released: Feb 26, 2015. Department of Homeland Security: Progress Made, butContinue Reading

Supporting Immigrant Integration in Europe – What Role for Origin Countries’ Subnational Authorities?

Migration Policy Institute: “The substantial role that subnational authorities in EU Member States play in the governance of migrant integration is widely recognized. Regional and local authorities in Member States have control over the implementation and delivery of a wide array of integration-related services. However, while much is known about integration at the subnational levelContinue Reading

FDIC-Insured Institutions Earned $36.9 Billion in the Fourth Quarter of 2014

FDIC news release: “Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $36.9 billion in the fourth quarter of 2014, down $2.9 billion (7.3 percent) from earnings of $39.8 billion that the industry reported a year earlier. The decline in earnings was mainly attributable to aContinue Reading

Hoard Behavior During Commodity Bubbles

de Paula, Aureo and Hong, Harrison G. and Singh, Vishal, Hoard Behavior During Commodity Bubbles (February 2015). CEPR Discussion Paper No. DP10441. Available for download at SSRN: “Hoarding by large speculators is often blamed for contributing to commodity market panics and bubbles. Using supermarket scanner data on US household purchases during the 2008 RiceContinue Reading

Hawks and Doves at the FOMC

Eijffinger, Sylvester C. W. and Mahieu, Ronald and Raes, Louis, Hawks and Doves at the FOMC (February 2015). CEPR Discussion Paper No. DP10442. Available for download at SSRN: “In this paper we estimate ideal points of Bank Presidents and Board Governors at the FOMC. We use stated preferences from FOMC transcipts and estimate aContinue Reading

Process Systems Engineering as a Modeling Paradigm for Analyzing Systemic Risk in Financial Networks

Office of Financial Research (OFR) Working Paper Series, February 11, 2015: “Financial instability often results from positive feedback loops intrinsic to the operation of the financial system. The challenging task of identifying, modeling, and analyzing the causes and effects of such feedback loops requires a proper systems engineering perspective lacking in the remedies proposed inContinue Reading

Financial Regulators Issue Guidance Encouraging Youth Savings Programs

“Five federal financial regulatory agencies today issued guidance to encourage federally insured depository institutions to offer youth savings programs to expand the financial capability of young people. The guidance also provides answers to frequently asked questions related to the establishment of these programs. Many financial institutions already collaborate with schools to establish programs that allowContinue Reading

Can the FCC Attract a Full House for the 2016 Broadcast Incentive Auction?

Kagan Media Appraisals: “Our assignment was to prepare an analysis of the financial capacity and competitive appetite of the wireless carriers, in particular AT&T and Verizon, to fully participate in back-to-back AWS-3 and 600 MHz Incentive auctions, assuming a 2016 start date for the 600 MHz Incentive Auction. This report is for informational purposes onlyContinue Reading

Ambitious reforms can create a growth path that is both strong and inclusive – OECD

“Determined and systemic action to implement a comprehensive reform agenda across a wide range of policy areas offers governments the best chance to boost weak demand, restore healthy economic growth, create jobs and ensure that the gains are broadly shared across society, according to the OECD’s latest Going for Growth report.  The report assesses and comparesContinue Reading