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BoE's Large on a framework for financial stability

In a e speech on 'A framework for financial stability' given on 18 May, Andrew Large of the Bank of England cautioned that new entrants such as hedge funds and insurers have become active in derivatives at a time when the depth of the market is still untested.

"The growth of derivative instruments and advent of a range of new asset classes, despite added dispersion and better risk management, have added to the risk of instability arising through leverage, volatility and opacity," he said.

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