More NBFI liquidity data could aid financial stability – ECB study
Research recommends active margin call monitoring for non-banks
European Central Bank (ECB) researchers have developed a novel framework for monitoring stress in the non-bank financial intermediary (NBFI) sector.
In a working paper, published on July 14, Valentina Macchiati and her colleagues say that by monitoring margin call data, regulators could improve NBFIs’ liquidity positions and prevent ripple effects in the broader financial markets during times of stress.
They apply their framework to “extreme spikes in margin calls in equity derivatives during the
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