Market function
Collateral management services: National Bank of Georgia/Montran
The duo developed Georgia’s fully automated new collateral framework
Banks’ repo muscles may have ‘atrophied’ – Borio
BIS report highlights impact on market functioning from Fed and ECB easing action
PBoC’s monetary policy framework not likely to change – RBA research
Institutional structure and economic development model prevents alignment with international peers, paper argues
Will the Fed pass its year-end funding test?
An unprecedented rate spike in September prompted the Fed to inject billions into funding markets. But will its efforts be enough to foil year-end pressures? Could opening the standing repo facility to foreign central banks help?
Some financial market fragmentation helps stability – BIS paper
Different types of market fragmentation have different trade-offs, researcher says
BoE’s Hauser urges firms to adapt to forex market fragmentation
Less sophisticated firms are paying much higher spreads, executive director says
Overcoming deflation: Japan’s experience and challenges ahead
Bank of Japan governor Haruhiko Kuroda explains how Japan’s long battle against deflation may offer insights for the future conduct of monetary policy at other central banks
UK to consider curbs on funds’ daily liquidity
Mark Carney says BoE officials are “disappointed” by limited global progress on issue
Narrow bank TNB hits back at Fed regulatory proposal
Fed overreaching by attempting to rewrite its chartering authority, TNB says; investment firm DE Shaw also reveals intentions to launch a narrow bank
Two top officials leave the New York Fed
Simon Potter and Richard Dzina step down after combined 49 years at the bank
Market power is a ‘puzzle’, BoE team says
Micro and macro evidence do not seem to match up, the authors say
Markets still in thrall to central banks – BIS
But some apparent anomalies may be signs of healthier market function, says Claudio Borio
NY Fed economist explores election night volatility
Treasuries suffered dramatic moves as Donald Trump was elected in 2016
Booming US economy set against ‘fragile’ markets – BIS review
Fiscal stimulus on top of loose financial conditions in the US continues to pile pressure on emerging markets, the BIS warns in its latest quarterly review
Central banks adapting to high-speed markets, BIS report finds
“Major developments” in markets are affecting the way central banks operate, Markets Committee says
Kuroda says controls on high-frequency trading ‘critical’
HFT can aid market efficiency, but action is needed to tackle its downside, says BoJ governor
Haldane: market power puzzle is important for policy
Micro and macro evidence “not easily reconciled”, says BoE chief economist, but market power could have major impact on inflation
Money market revamp would help transmit policy in Iran – IMF
Central bank currently struggles to conduct open-market operations; new policy framework would aid transmission and deepen markets, fund says
High-frequency data helps capture ‘psychological subtlety’ – BoJ paper
Study of “tick-by-tick” data finds markets have become more sensitive to the central bank’s policy announcements
Neural network learns ‘universal model’ for stock-price moves
Relationships between order flow and price “are stable through time, and across stocks and sectors”
Market structure affects monetary neutrality – paper
Minneapolis Fed research finds oligopoly undermines the neutrality of money, amplifying the real impact of monetary shocks
Internal capital reallocation matters, BIS paper finds
Authors model response of a bank to tightening capital constraints, shedding light on how banks may respond to changes in their environment
Research can help BoE keep pace with automation – Salmon
As algorithms continue to make markets faster, regulation will need to be adapted, says BoE director; academic research will aid central bank efforts