samchain/econo-pairs-v1 huggingface dataset:
That should leave default risk more readily monitorable and more efficiently priced. We should therefore see an enhancement of banks’ and investment houses’ credit analysis functions and more trading of credit differentials. My second question was how much will be traded in a post-EMU world? This is not an easy question to answer. Volumes are difficult to predict. On the one hand, EMU may bring about a more stable interest rate environment, as well as eliminating national interest rates and exchange rates, reducing the need for hedging mediums and hence for derivative products. On the other hand, increased liquidity in the euro bond markets could encourage business and we could well see new participants entering the capital and derivative markets. My hunch is that the latter possibility is more likely. And that the market for carefully constructed derivatives contracts, properly sold to customers with a genuine need for them, will continue to expand. BIS Review 67/1997  -5-  That brings me to my third question, where will the trading be done? I do not think that there is a determinist answer to this question. Nor, certainly, should it be a matter of decision by politicians, central bankers or financial regulators. Certainly, our predisposition is to think that competition will and should determine where business is done and the outcome will depend on the imagination and effort of the managers and controllers of the different markets. There will be lively competition between LIFFE, the DTB and Matif, I am quite sure.

Mr. Davies looks at the tasks of the UK's new Securities and Investments Board and how it will affect the business community Speech by the Deputy Governor of the Bank of England, Mr. Howard Davies, at the Futures and Options Association International Derivatives Week Conference in London on 4/6/97. Thank you for your invitation. And, particularly, thank you for not withdrawing it when you discovered that, rather than having on your platform a benign, soft-centred Deputy Governor of the Bank of England, you found yourself face to face with the all-seeing, all-regulating head of super-SIB. This may have come as a surprise to you - but nothing like as big a surprise as it was to me, I can assure you. And I have to say that, in spite of the way I have been presented in some of the newspapers, muscles rippling beneath a Superman T-shirt, I still feel rather more like Clark Kent in his thick specs, stumbling myopically around the office. I haven’t yet found a phonebox in which to get changed. I do not plan, this morning, to talk at length about my new responsibilities, partly for the very good reason that I have not had the time to prepare a coherent plan of campaign. But I might just say a word or two about the new SIB, and the way it will affect your business. I have been quite encouraged, so far, by the market reaction to the proposed new structure.
So these four accelerators are needed, but this does not mean they all have to be implemented at the same time. The latter two accelerators, fiscal and institutional, would indeed require Treaty changes, unless they were to be very limited. However, this must not stop us from taking steps straight away on the first two accelerators, macro and micro, on which I will insist today. I would like to share with you some personal reflections – useful for the proposals that the European Commission will make in December and for our debate today. To be more specific, I will focus on one part of each of these two accelerators, where progress can be made quickly: I will first dwell on the creation of a Stabilisation Lending Instrument (SLI) as part of the macro accelerator, and I will then elaborate on the completion of the Banking Union as part of the micro accelerator. **  I. A macro accelerator, including a Stabilisation Lending Instrument (SLI) and perhaps a European Monetary Fund The macro accelerator is premised on one simple fact: economic growth and employment would be stronger in the euro area if we combined more reforms in countries where they are needed, like France or Italy, and more stimulus in countries with leeway for it, like Germany or the Netherlands. To achieve this collective economic strategy, euro area Member States have to seal a deal, which could be prepared and adopted as early as 2018.

In due course, it would be beneficial to bring an EMF into the fold of the Community method, which means anchoring this institution in the framework of Union law [the Commission has suggested proceeding on the basis of art. 352 of the TFEU]. Within this framework – and only within it – it would make sense to entrust an EMF with a broader surveillance mission, including the task of monitoring compliance with the common rules, a role that is today assigned to the European Commission. II. A micro accelerator, including the completion of the banking union Let me now turn to the micro accelerator for the Economic Union: a Financing Union for Investment and Innovation. The aim is to better steer the euro area’s EUR 350 billion annual savings surplus towards productive investment, notably by shoring up equity which is the key to an innovation economy. Thanks to unified governance, this Financing Union would help circumvent bureaucratic barriers and foster synergies between the existing building blocks: the Juncker Investment Plan, the Capital Markets Union and the Banking Union.
Captives could metaphorsise from perceived brass plates models into legitimate commercial vehicles that serve a real economic purpose. Perception management is pivotal for the future existence of captives. Captives must be seen as supporting and contributing to the broader economic transformation and growth. These three developments; the emergence of more diverse captive models serving a broader spectrum of companies, technological advancements and more considered regulations, are likely to foster a greater convergence between the intended economic outcomes of captives, and the required and appropriate regulatory framework. I hope that this forum will seize the window of opportunity to bring together mutual interests that have long been somewhat at odds. As a collective, all of us here today, have a common interest in ensuring that captives demonstrate genuine value and valuable economic purpose. Achieving this calls for strong corporate governance practices, greater transparency and sound financial management that commensurate with underwritten risks. Ultimately, a new reality needs to be embraced by captives. In the long term, investing in technology, technical expertise, better and stronger compliance frameworks are worthwhile endeavors. It’s no more a choice. At stake is the viability of individual captives and an enduring captive industry that will add breadth and depth to insurance markets. Conclusion The captive industry may well be at a turning point. In moving forward, how we start matters. Efforts to develop the captive industry should be focused on better risk management, promoting macro-economic stability and encouraging new growth rather purely concentrated on tax planning.

Besides a legal relation, the bank-client relation is a human relation, one of trust. When a business delays the payment of a bank loan instalment, it should consider its judgement on the bank if the bank delayed the payment of the matured interest to that business. Dear ladies and gentlemen, On behalf of the Bank of Albania, I would like to invite the communities present in this event to strengthen their communication bridges, which is of benefit not only to them but also to the economy in general. 2  BIS central bankers’ speeches
Undeniably, the international crisis worsened our economy’s situation by prompting a worldwide recession and the closure of the funding markets. But, as we now fortunately acknowledge, in Spain we had our own problems that needed resolving. Another example of not realising or not wishing to acknowledge problems can be seen in those who claim that, to redress our high budget deficit, it is not vital to make spending cuts. It’s not right to say that spending cuts, appropriately adopted in my view by the central government and by certain regional governments, were not needed. A responsible attitude should lead to recognition that it is not possible to reduce a deficit that had climbed to 11% to 3% of GDP without making far-reaching cuts in public spending. As to the second task, namely the search for solutions to resolve our problems, our Parliament has correctly identified two of the changes needed to tackle the problems created by the imbalances incubated during the expansionary phase: the reduction of the budget deficit and the restructuring of part of our banking system. As regards fiscal consolidation, the Stability Programme that has targeted a deficit of 3% by 2013 is an ambitious plan. It has been recognised by the European Union and has been met in its first year. Accordingly, all tiers of government – central, regional and local alike – must rigorously fulfil the targets set for the current and coming years.

True, there are other external factors that generate what is occasionally unwarranted mistrust of the Kingdom of Spain. Undoubtedly, factors such as market irrationality, herding or procyclicality are significant, but they will not foreseeably change. There are also other factors, such as the mistakes made by European Union Member States when attempting to resolve their problems, that are no doubt also responsible for this higher cost, and the proof is that the sense of incapacity being conveyed to the markets does not only affect our country, as shown by the abnormally high level of most euro area countries’ CDSs. But it must also be accepted that the possibility of improving economic governance in Europe is in the hands of many other countries and not only Spain. This is why we should focus on easing the concerns of the markets, which do largely depend on us. These concerns are those that I have mentioned: there are doubts as to whether we will be capable of seeing through the fiscal adjustment, concluding the restructuring of savings banks and changing the institutional framework in a way conducive to job creation in Spain. As to the fiscal adjustment and to financial restructuring, I believe the means and the schedule set by Parliament are correct, and now it’s a question of complying.
The FOMC also announced last week that starting June 1st, it will begin reducing the size of its holdings of U.S. Treasury securities and agency debt and agency mortgagebacked securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet.2 The reduction of the balance sheet will play out over the next few years, eventually bringing the Federal Reserve's securities holdings to a level consistent with the ample reserves framework that the FOMC reaffirmed in January when it released its principles for balance sheet reduction.3  Economic Outlook Even before it took these actions, the FOMC communicated a path of raising the target federal funds rate and reducing the balance sheet. Those communications and subsequent actions are having a meaningful effect on broad financial conditions. For example, since the beginning of the year, both two-year Treasury yields and 30-year fixed mortgage rates have risen more than 2 percentage points. We have seen a significant tightening of financial conditions abroad as well. Our monetary policy actions will cool the demand side of the equation. I also expect that over time, the factors contributing to supply shortages will be resolved, so that some of the rebalancing will be accomplished through increases in supply, both in the United States and around the world. For 2022, I expect core PCE inflation to be nearly 4 percent, before falling to about 2 ½ percent next year. I expect inflation to further decline to close to our 2 percent longer-run goal in 2024.

It is our job to ensure that companies and households can make transactions and calculations using a currency with stable purchasing power. During the time Estonia has been a member of the European Union, the well-being of the people of Estonia has improved. EU membership has meant our economic environment has been more stable and deserving of confidence. In the past ten years, economic growth in Estonia has surpassed average economic growth rates in the European Union, so that Estonian GDP in purchasing power terms has advanced from 55% of the EU average in 2003 to 71% in 2012. The incomes of residents of Estonia have also increased, with real wages up more than 40% in the past decade. EU membership has brought both opportunities and risks. It is the job of those setting national policy to make sure that risks are minimised and that we are best able to profit from opportunities and I am sure that the analysis provided here today by my colleagues will help in guiding the decisions behind that policy. The presentations we will hear today have been prepared thanks largely to the initiative of the European Commission Representation in Estonia to celebrate the tenth anniversary of Estonia’s accession to NATO and the European Union. In summary we can say that in ten years we have made Estonia and the space where Estonian people operate much larger. BIS central bankers’ speeches  1
These declines have been even larger if measured from the release of the minutes of the previous FOMC meeting in August, after which market expectations of easing in September increased. This is solid evidence that our policy has been and continues to be effective – though it is certainly not allpowerful in current circumstances. However, the impact of monetary easing on the economy through housing and mortgage finance has been impeded to some degree by two factors. First, not enough people can take advantage of today’s low primary mortgage rates. Mortgage underwriting standards have tightened quite dramatically and the share of new mortgages going to households with better credit metrics has risen. While it is difficult to disentangle how much of this is due to supply versus demand factors, it appears likely that credit standards for home purchase loans have not just tightened since the housing bust but overcorrected. BIS central bankers’ speeches  1  In addition, many homeowners find it difficult to refinance their existing mortgage because they have little equity in their homes, or are outright “underwater” with mortgage balances that exceed the current appraised value of their property. In a speech earlier this year, I called for measures to ease refinancing and tackle other frictions and market failures that lead to economically inefficient outcomes in housing. Some useful steps have been taken. But, more could be done, and these issues warrant ongoing focus by policymakers.

Today, though, we are focusing on a second impediment to the impact of monetary policy on the economy through housing and mortgage finance: the significant widening of the spread between yields on mortgage-backed securities in the secondary market and primary mortgage rates. Actions taken by the FOMC such as its MBS purchase program operate principally on the secondary rate. For these actions to achieve their full impact, reductions in the secondary rate need to also pass through to the primary rate. To the extent that the primary-secondary rate spread widens the reduction in pass-through limits the full impact of the policy actions. In the late 1990s and early 2000s the primary-secondary spread was in the range of 30 to 50 basis points. In recent years and over the past 18 months in particular, the spread has increased substantially. Following the September FOMC meeting it rose above 150 basis points. A spike in the spread following a decision to ease monetary policy is not surprising because the primary market may be slower to react. The spread has since retraced to its pre-September FOMC meeting level of about 120 basis points. However, the spread remains elevated by historic standards. An important objective of this workshop is to gain a deeper and clearer understanding of the determinants of the primary-secondary spread and its dynamics over time.
And all are competing for business in a way unthought of a few years ago witness the competition between LIFFE and Eurex for the long and short ends of the euro yield curve. The latest score in that particular England:Germany match is one all. No doubt German supporters think this score-line would have been a fairer result on Saturday night, given the balance of play! 1  BIS Review 51/2000  Role of technology But the common factor in all of these developments is technology. Physical trading floors for exchanges are fast-disappearing, particularly on this side of the Atlantic, replaced by virtual floors with trading conducted electronically. And exchanges are utilising their markets and system expertise to become trading system providers as well as market operators: OM has been a leader in this field for some time now, and LIFFE has announced some exciting plans - the creation of - fittingly enough “LIFFE.com” and its recent tie-up with Cap Gemini. On balance, these developments must be in investors’ interests. They reduce costs, improve access and allow exchanges to respond quickly and effectively to users’ changing needs. But they also present a number of challenges. To move from a trading floor, with its mix of locals, brokers and market makers, to an electronic order book, undoubtedly changes the dynamics of a market. For regulators, remote trading also brings some difficult challenges. Technology does not respect national boundaries; nor does it recognise different jurisdictions.

David Clementi: Technological innovation and e-commerce – the implications for derivatives markets  Speech by David Clementi, Deputy Governor of the Bank of England, at the opening reception of International Derivatives Week, held in London, on 19 June 2000. *  *  *  Ladies and Gentlemen, I am delighted to address you at the start of what, I am sure, will be an informative and thought-provoking International Derivatives Week. Given the recent rapid pace of technological development, it is fitting that this year’s conference focuses on e-commerce and its impact on the derivatives industry. This is certainly a topic of great interest to the Bank of England. Maintaining the stability of the financial system and the effectiveness of the UK’s financial services are key objectives for us and recent developments are highly relevant to both. Nobody doubts that technology has rapidly changed the financial landscape, and will continue to do so. One only needs to spend time online to realise that virtually anything - from commodities, to cars, to Pokemon cards - can be bought and sold by someone with access to a terminal. Electronic trading and communication networks have greatly increased the “reach” of the traditional financial marketplaces, but at the same time allowed a wide range of new trading system providers to enter the markets at relatively low cost. It is a challenge just to stay abreast of the latest developments.
Besides entailing rising inflation, this causes firms and households to start accustoming themselves to a high level of inflation. Monetary policy may then be forced to adopt a contractive stance in order to bring inflation back to the target rate. So if the central bank waits too long, the interest rate increases may be all the larger. In the meantime, moreover, economic imbalances and tensions may become so great that they lead to economic setbacks. We are familiar with such a course of events from the 1970s and 1980s, and perhaps not least from the early 1990s. Against this background, in situations when capacity is coming under pressure, it is clearly better for a central bank to act at an early stage. Future inflation The assessment in the inflation report, published just over a month ago, is that growth in the Swedish economy will be about 2 per cent in 1997 and around 3 per cent in 1998. In 1999, the rate is expected to go on accelerating to just over 3 per cent. This assessment envisages that, in an expanding world market, export growth remains relatively high. This is accompanied by an accelerating increase in private consumption, while public consumption at least stops falling. Economic growth in Sweden in 1998 and 1999 would then most probably exceed the potential rate, which is estimated to be just over 2 per cent in annual terms. The broad rise in all the major demand components will therefore gradually exert pressure on the available resources.

However, given the need to have a framework which can be adapted to a wide range of circumstances, cooperation among supervisors is clearly the most important tool in achieving an appropriate level of consistency. The Committee has established a working group of supervisors, called the Accord Implementation Group, or “AIG,” that shares information on implementation efforts among Basel Committee member countries. The AIG works with other supervisors as well, including through the Core Principles Liaison Group, a group of supervisors from many other countries that shares views and exchanges information. By promoting the sharing of information on practical issues, the AIG’s discussions will help to foster greater consistency in the implementation and application of the new framework across countries. Conclusion I now look forward to hearing some additional perspectives from our panellists on Basel II and especially their thoughts on its implications for the Indian banking sector. As I have stressed in my remarks, Basel II is intended to reinforce our focus on risk and to encourage all of us to improve our skills in measuring and managing those risks. In one sense, then, Basel II might be considered an effort to re-invigorate the risk management culture in the banking sector. I believe that Basel II provides banks with the incentives necessary to encourage them to improve their risk management systems and processes. At the same time, the new capital framework will help to ensure that capital supervision continues to serve as a cornerstone to safety and soundness in the banking system.