This special issue of The Journal of Financial Market Infrastructures on collateral provides a collection of papers that are not fully in sync with traditional thinking in policy and academic circles, or are under-researched.
The authors model the asymmetry between collateral values to the parties in the collateral chain. The paper highlights that collateral reuse can be socially beneficial if the costs of misallocation are not significant.
The authors discuss the incentives created by the structure of CCPs’ default waterfalls, drawing out the role of transparency and governance in ensuring effective incentives.
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Pay packets up in 2014 as average hedge fund returns 3%
Our research finds little op risk input on pay decisions
Work on incentive reform was well received
This year's survey of operational risk managers shows that the importance of operational risk management is becoming more widely accepted – but there is still no consensus on how to involve it in different areas of the business
Three out of four major UK banks now link incentives to more than just sales, regulator says
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Old and new dangers
US banking regulators expected to require mandatory deferred bonuses and limits on upfront cash under the Dodd-Frank Act
Discussion about incentives to promote good risk management is increasingly gaining relevance for Basel II advanced measurement approach applicants, as well as for banks adopting the standardised approach
Daily news headlines
Daily news headlines
The structure of incentive schemes may limit the ability or willingness of institutional asset managers to act as a natural counterbalance to mispricing, according to the Committee on the Global Financial System (CGFS) – a G-10 central bank forum that...
BRUSSELS - The European Commission highlighted in November major drawbacks to the use of operational risk insurance to reduce op risk capital charges, despite its readiness to explore a wider use of insurance than that proposed in the Basel II bank accord.