BIS central bankers’ speeches  15  Hasbrouck J and Saar, G (2011), “Low-latency trading”, Johnson school research paper series No 35-2010. Hendershott, T, Jones, C and Menkveld, A (2010), “Does Algorithmic Trading improve Liquidity?”, Journal of Finance, Vol. 66, pp. 1–33. Jarrow, R A and Protter, P (2011), “A dysfunctional role of high frequency trading in electronic markets”, Johnson School Research Paper Series No. 08-2011. Kirilenko, A, Kyle, A S, Samadi, M and Tuzun, T (2011), “The Flash Crash: The impact of high frequency trading on electronic markets,” Commodity Futures Trading Commission working paper. Lehalle, C, and Burgot, R (2010a), “Navigating liquidity 4”, Cheuvreux Credit Agricole Group, April, available at: https://www.cheuvreux.com/pdf/Navigating_Liquidity_september2009.pdf. Lehalle, C, Burgot, R, Lasnier, M, and Pelin, S (2010b), “Navigating liquidity 5”, Cheuvreux Credit Agricole Group, December, available at: https://www.cheuvreux.com/pdf/NavigatingLiquidity5_December2010.pdf Mackenzie, D (2011), “How to Make Money in Microseconds”, London Review of Books, available here: http://www.lrb.co.uk/v33/n10/donald-mackenzie/how-to-make-money-inmicroseconds. Mandelbrot, B B and Taylor, H W (1967), “On the Distribution of Stock Price Differences”, Operations Research, Vol. 15(6), pp. 1057–1062. O’Hara, M (2004), “Market Microstructure Theory”, Blackwell Publishing. Perrow, C (1999), Normal Accidents: Living with High Risk Technologies, Princeton, NJ: Princeton University Press. Peters, E (1994), Fractal Market Analysis: Applying Chaos Theory to Investment and Economics, Wiley Finance. Qian, B and Rasheed, K (2004), “Hurst exponent and financial market predictability”, IASTED conference on “Financial Engineering and Applications” (FEA 2004), pp. 203 – 209. SEC (2010), “SEC Approves Rules Expanding Stock-by-Stock Circuit Breakers and Clarifying Process for Breaking Erroneous Trades”, available at: http://www.sec.gov/news/press/2010/2010-167.htm.

According to the FSB Key Attributes, a resolution authority should not impose a moratorium on payments, settlement and deliveries related to the core functions or other critical services of the CCP (Key Attributes, Appendix II, II-Annex 1, paragraph 4.17). A short stay could however give the resolution authority time to assess the situation, determine how best to exercise its resolution powers and limit systemic disruption. See Duffie, D., and Skeel, D., “A Dialogue on the Costs and Benefits of Automatic Stays for Derivatives and Repurchase Agreements”, University of Pennsylvania Law School, January 2012. 8  BIS central bankers’ speeches  More generally, in recent months, market participants have expressed concerns that, due to the significant amount of new regulation being discussed and implemented worldwide, it is sometimes hard to get a full picture of the regulatory architecture currently being set up. I therefore believe it is important for authorities to continue to work together, as they have done since the crisis, and to assess the combined effects of global regulation on the market and on incentives to mitigate risks. An example of this type of cooperation is the work carried out by the OTC Derivatives Assessment Team, which brings together representatives of several regulatory committees, and which published a report in 2014 examining the incentives for central clearing in the current regulatory landscape.18 Part of this work will involve looking at how regulations applied to CCPs interact with those applied to other entities in the financial system, namely banks.