Collateral Markets and Financial Plumbing (3rd Edition)
First published:
If you are a Risk.net subscriber you are entitled to 20% off your Risk books purchases. Please email enquiries@riskbooks.com for more information.
As part of your Risk.net subscription you are entitled to 20% off all of your Risk Books purchases. If you would like to place an order please email enquiries@riskbooks.com
Privacy Provision, Payment Latency and the Role of Collateral
Charles Kahn, Caitlin Long and Manmohan Singh
Foreword
Introduction
Collateral in Financial Plumbing
Collateral Velocity
Leverage in the Financial System
Quantitative Easing and the IS/LM Framework
Money, Collateral and Safe Assets
“Reverse” Monetary Policy Transmission
Central Bank Balance Sheet Policies and Emerging Markets
The Collateral Custodians
The Changing Collateral Space
Collateral in the OTC Derivatives Market
CCP Resolution Remains Unresolved
The Sovereign–Bank Nexus via OTC Derivatives
Privacy Provision, Payment Latency and the Role of Collateral
Conclusion
Annex: Chapter 2
Annex: Chapter 7
The new boundary between publicly and privately provided payments systems and the role of collateral may be changing. Fintech – the convergence of technologies including artificial intelligence and big data, distributed computing, cryptography, the internet and mobile access – has led to a variety of applications in the financial industry, prime among them being the development of new payment systems. These technological developments have made it feasible for policymakers to contemplate the possibility of abolishing physical cash, replacing it with electronic alternatives. But these technological developments have also led to an increased awareness of and concern with problems of privacy in payments systems. (Kahn, St Louis Fed, 2018.)
One of the arguments that have been made by regulators attempting to reduce the use of cash has been that the privacy it provides facilitates illegal activity. But there are other legitimate sources of demand for privacy in payments. The first is for protection from the counterparty to the transaction. (Kahn, McAndrews and Roberds, 2005.) There are cases where an individual makes a legitimate transaction with a stranger, but wants to ensure that
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
