samchain/econo-pairs-v1 huggingface dataset:
We are doing so with the firm conviction that this will be the new statutes of the BNB in the following, at least, 20 years. We have been actively working on other euro area-related legislative amendments as well. For example, yesterday the Governing Council adopted the required amendments to the Law on the payment systems concerning the euro area. This draft will be submitted to the Ministry of Finance today or on Monday at the latest because the BNB is not entitled to direct legislative initiative. 3/4  BIS - Central bankers' speeches  I do not have to dwell on this any further. What I would like to say is that on the part of the BNB, there is not a single day of delay with regard to the euro area-related legislative programme, nor is there any unsettled issue in this regard, with the ECB or with the European Commission. And yesterday, during our debates with Mr. Dombrovskis, we cleared up this topic. The same is true for the technical preparations. The BNB and commercial banks provided in their 2023 budgets the funds required for these preparations which are well underway. For example, yesterday we discussed with Mr. Dombrovskis and his team as to how we can move forward with the implementation of the memorandum on the minting of test Bulgarian euro coins, signed in December. A few words about the date. We do understand the considerations of the European Commission and the Government about changing the date.

In this context, there has been an increase in the willingness to take on risk in financial markets, increasing stock market indices, reducing sovereign risk premiums and increasing capital flows to emerging markets. Commodity prices have also benefitted. Copper, our main export product, has been trading at prices near two year highs and prospects for the next few years have improved, which has had a material impact on the Chilean terms of trade. Thus, based on better growth prospects for our trading partners, favorable external financial conditions and increased terms of trade, the baseline scenario included in the Monetary Policy Report published at the beginning of April, considered that, for the next two years, the Chilean economy will receive an external impulse higher than considered at the end of 2016 (Figure 1). 1/ Keynote speech at the VI JP Morgan Southern Cone and Andean Opportunities Conference, April 25th, 2017. This speech  is based upon that delivered at The Council of the Americas, April 20th, 2017. Figure 1 Trading partners GDP  Terms of trade (*)  (annual change, percent)  (index; 2013=100)  4.5  4.5  4.0  4.0  105  105  Mar.17  100 Mar.17  3.5  100  3.5 Dec.16  Dec.16 3.0  3.0  95  95 Sep.16  Sep.16 2.5  2.5  Avg. 00-07  Avg.
The cantons – our majority shareholders – are well represented in our supervisory body for operating matters, the Bank Council. As you see, the special characteristics of the Swiss system are taken into account. Federalism is mirrored in the composition of the Bank Council and in the distribution of our shareholdings and – not least – in the distribution of profit. The Swiss constitution and the National Bank Act provide for the SNB’s profit to be paid to the Confederation and the cantons. Two-thirds accrue to the cantons and one-third to the Confederation. However, a distribution can only be carried out if the balance sheet and the SNB’s result allow for this to be done. The robustness of our balance sheet, in other words, setting aside provisions for currency reserves, takes first priority over a distribution. This can be derived directly from the legislation. The appreciation of the Swiss franc against most other currencies weakened our balance sheet last year. In addition, very volatile results may be expected in the next few years because of the current size of the balance sheet and the uncertain situation in the capital markets. Consequently, the possibility that distributions to the Confederation and the cantons will have to be suspended in certain years cannot be excluded. Fiscal interests must take a back seat when it comes to ensuring our long-term monetary policy freedom of action and independence. The Governing Board is also genuinely Swiss.

The European System of Financial Supervisors, which also includes the European Systemic Risk Board (the ESRB), is a new supervisory architecture requiring the National Supervisory Authorities to cooperate with the European Supervisory Authorities in the identification and analysis of systemic risks. The objective of the ESRB is to address one of the most important weaknesses identified during the financial crisis, as highlighted by the de Larosière Report – the lack of an adequate pan-European monitoring, assessment and mitigation of systemic risk. In line with the ESRB recommendation to enhance macro-prudential governance in each Member State, in the case of Malta, it is the intention to replace the current Standing Committee by a joint committee on financial stability. This committee, which will include representatives from the Central Bank of Malta and the Malta Financial Services Authority, would be mandated to monitor and assess risks to financial stability. Its objective is to formulate policy recommendations to the Boards of the two institutions, designed to safeguard financial stability, strengthen resilience of the financial system and minimise systemic risk. The recently announced changes to the Depositor Compensation scheme are a welcome change and help increase the resilience of the domestic banking sector. They are also in line with the recommendations of the latest IMF report.
But if those rates of expansion continued, the share of employees on zero-hours contracts would reach around 7% within a decade. Trends in temporary and part-time work have been less striking, but have gone in the same direction. Between 1997 and 2008, temporary work declined as a share of employment. But since 2008 it has increased. There are currently around 200,000 more temporary workers than before the financial crisis. Prior to the crisis, around 25% of those in employment worked part-time. Since the crisis, that share has increased to around 26%, or around 8 ½ million workers. If we took together self-employment, part-time and temporary working and zero-hours contracts, their share 9  of the workforce has probably risen to around 43%, or around 13 ½ million workers. The corresponding figures back in 2000 would have been around 39% of the workforce, or around 10 ½ million workers. This is not a majority, but it is a significant and rising minority of workers. 8 9  For example, Blanchflower and Machin (2017). There needs to be caution when simply summing these categories as some of them probably overlap, generating double-counting. 6  All speeches are available online at www.bankofengland.co.uk/speeches  6  These trends in self-employment, temporary and part-time employment are based on survey data. Those broad trends are corroborated if we look at data on job vacancies rather than employment.

The fiscal rule is a binding commitment policymakers have imposed on themselves and is intended to foster long-termism and predictability in fiscal policy. Norway’s floating currency, which normally appreciates in good times and depreciates in bad times, also has a stabilising effect. The advantage of this effect is most evident when economic developments are weak. For example, many southern European countries that have adopted the euro are currently facing considerable challenges. To improve competitiveness, wages in these countries must fall or at least rise much more slowly than in other European countries. This only occurs when unemployment is high. With a flexible exchange rate, competitiveness can also improve when the domestic currency falls in value. A flexible exchange rate can thereby reduce fluctuations in employment and output. On the other hand, the foreign exchange market can be mistaken, driving the exchange rate away from the path indicated by fundamental conditions. Herd behaviour and market psychology can contribute to fluctuations and instability. In spring 2001, the Norwegian government and parliament defined a formal inflation target for monetary policy. The task of achieving the target was delegated to Norges Bank. Norges Bank sets the interest rate on banks’ deposits and loans from the central bank. This interest rate determines banks’ lending and deposit rates and the level of interest rates in general, as well as the price of the loans you take out as students. The interest rate is set with the objective of ensuring low and stable inflation.
I’ll begin with a few words on the conclusion of the third consultation period and a short summary of the major themes we gleaned from the comments we received. Since we have discussed the new capital requirements themselves extensively over the past several months, I would next like to address some of the other equally important issues that the BBA and others raised in their comment letters. BIS Review 42/2003  1  The conclusion of the third consultation period  Allow me to begin with a report on the very busy summer we had in Basel. It’s fair to say that we received more responses on the third consultative paper than we expected. Over 200 comments were submitted by the conclusion of the comment period in July though that was less than the 250 comments we received on the second consultative document two years ago. What was not surprising was the depth of interest in the proposals and the considerable degree of thought and care that respondents demonstrated in their letters. In this regard, the Committee owes a debt of gratitude to the many members of the industry and the public who have supported our work over the past several years. The considerable time and attention that especially the BBA and its members have devoted to the development of the New Accord are evident in the high quality of your comments and suggestions. You have offered constructive thoughts and creative solutions.

This has sometimes resulted in an inconsistent application of the minimum requirements and the adoption of different expectations across countries and an increase in regulatory burden on banks. Incorporating supervisory review into the international guidelines represents a genuine breakthrough for all of us. By developing guidelines for the supervisor’s evaluation of a bank’s internal capital allocation process, the Committee believes that supervisors and banks will engage in more focused, more consistent, and less burdensome discussions of the risks that banks face and the responses they adopt. The Committee recognises that national laws and regulations provide different avenues through which supervisors may conduct such reviews, and consequently Pillar 2 affords each jurisdiction the flexibility to accommodate those differences. The topic of supervisory review must also be considered in the context of the level playing field, one of the themes I mentioned earlier that came out clearly in the comment letters. As the members of the BBA and the London Investment Banking Association expressed in their joint comment letter, for example, the way in which the New Accord is applied and supervisory review is conducted across countries matters critically to the daily operations of internationally active banking organisations. Your letter noted the importance of consistency in standards and consistency in the interpretation of the new framework, as well as the challenges that even limited areas of national discretion can create. BIS Review 42/2003  3  These concerns go the very heart of the Committee’s mission.
Like they say, what goes around, comes around – it is now our turn to share our experience. I am glad to say that the NBR – in a consortium with De Nederlandsche Bank – has been involved since June 2015 in a Twinning project dedicated to the National Bank of Moldova, the NBR providing expertise in the areas of regulation and authorisation, supervision, financial stability and human resources. While speaking about my own experience in reforming the NBR in the early 1990s, after the fall of communism, the words of Walter Bagehot have come to my mind. Referring to the needed changes in the governance framework of the Bank of England, he wrote in his book “Lombard Street: A Description of the Money Market”, published as early as 1873, that “putting new wine into old bottles is safe only when you watch the condition of the bottle, and adapt its structure most carefully”. I find this metaphor particularly adequate for guiding us in the demanding task of tailoring the structure of central banks to the challenges of today and tomorrow. Let me add only that – as I once put it – good wine is as difficult to make as good monetary policy. And proper dosage is of the essence in both cases. 6  BIS central bankers’ speeches

Table 2: Labour mobility estimates, 2010  Regions  Annual gross migration flows/population, %  US: between 50 states  2.4  Australia: between 8 states/territories  1.5  Canada: between 10 provinces/territories  1.0  Scotland/rUK  0.6  EU27: between 27 countries  0.3  Sources: OECD; Bank calculations using General Register Office Scotland Migration Statistics and ONS mid-year population estimates. All data are for 2010. Notes: Population mobility estimates are shown for the UK, Australia, Canada and the Unites States and labour force mobility for the EU. BIS central bankers’ speeches  13  Table 3: Nominal export and import shares in 2013 Export Shares rUK (to Scotland) Scotland (to rUK)  2013 Q1 & Q2 14% 70%  Import Shares rUK (from Scotland) Scotland (from rUK)  8% 74%  Sources: Bank calculations; ONS Quarterly National Accounts (2013Q3); Quarterly National Accounts Scotland (2013Q2)  Chart 4: Cumulative change in MFI deposits from other euro-area countries (all sectors) Italy Portugal  Spain Ireland  Greece Cyprus  Cumulative change since January 2010  60 40 20 0 -20 -40 -60 -80  2010  2011  2012  2013  -100  Sources: ECB and Bank calculations.
Sources: The Riksbank, Ministry of Finance, National Institute for Economic Research and Statistics Sweden  As the figure shows, assessments of the level of equilibrium unemployment for the last four years (2008–2011) are relatively similar. The Ministry of Finance assumes that equilibrium unemployment will decrease strongly in the years ahead. The difference in the assessments is primarily because the National Institute of Economic Research and the Riksbank do not expect the economic policy to have such large effects on equilibrium unemployment. Good guidance for monetary policy? So serious attempts at calculating equilibrium unemployment have been made, but these have concluded in different assessments. Nevertheless, it is important that we try to gain an idea of equilibrium unemployment. Not least is this important in a time when reforms have been adopted that should (as most analysts agree) lead equilibrium unemployment to decrease. But I am extremely doubtful as to whether measures of equilibrium unemployment should be given too prominent a role in practical monetary policy. It seems simple in theory; but, in practice, it is not. Even if we could be more certain of the level of equilibrium unemployment further ahead, this would not give us such strong guidance for monetary policy decisions in the here and now. This can be illustrated by the following diagram.

Global integration is not the solution to all our problems, but acting to restrict it or to insulate us from its consequences would damage our capacity to grow and to adapt to change, and these costs would make it harder, not easier, to deal with our longer-term challenges. To the extent we are reluctant to remove restrictions or subsidies in the United States, we make it easier for the forces in other countries to block reforms from which we would benefit. The world has a lot of experience with the costs and benefits of protection, and the balance of judgment on those questions has not significantly changed even with all the changes that technology and policy have brought to global trade. Economies that are more open have generally seen more rapid growth, both in incomes and in employment. Economies that are less open have generally grown less rapidly. Openness itself, of course, is not enough. Our capacity to adapt to change depends in part on the effectiveness of government policy in a range of important areas. Education seems the most obvious of these, but policy in health care, in public infrastructure, and many other areas will also play an increasingly important role in determining the relative strength of the U.S. economy in this more integrated world.
It accounted for one third of international issuance of green and sustainable bonds in Asia. In 2022, we continued to see strong momentum, in particular in the area of green and sustainable loans. The vibrant green bond market is in part a result of the many breakthroughs made by the Government Green Bond programme. Since 2019, the HKMA has assisted the Government in issuing nearly $ billion worth of green bonds targeting both institutional and retail investors. We made use of each issuance to innovate and expand the suite of green bond products in terms of currencies, tenors and distribution channels, thus laying the foundation for other public and private sector issuers in the region. These issuances kept pushing the boundaries. Just over the last few years, we made the world's largest retail green bond issuance, Asia's largest ESG bond issuance, and issued the world's first tokenised government green bond. We will continue to seek new breakthroughs. In the coming five years, planned annual issuance of Government Green Bonds will increase from $ billion to $ billion. The mandate of this programme will be expanded to cover sustainable bonds as well. We will also consider how best to incorporate green and sustainability elements into a new infrastructure bond programme we are developing for the Government.

We will continue to press ahead with the experimentation in tokenised green bonds, leveraging blockchain technology to enhance the efficiency of bond issuance and transaction, and to explore real-time tracking and reporting of the environmental impact of projects funded by bond proceeds. And to promote financial inclusion, we are now looking into an arrangement to earmark a certain proportion of future green and infrastructure bond issuances for priority investment by MPF funds. This will provide a meaningful investment option for MPF scheme members to receive reasonable returns while investing in a better future for our city. Climate finance is a subject that is very dear to the hearts of many of us here. It's also an exciting subject that I could keep talking about. But I am aware that I have taken more than a fair share of your time. So what remains for me is to wish the ASIFMA event every success, and double down on the HKMA's commitment to working with  3/4  BIS - Central bankers' speeches  ASIFMA towards our common purpose of scaling up Hong Kong's green and sustainable finance. Thank you. 4/4  BIS - Central bankers' speeches
Easley et al show that their imbalance measure rose sharply ahead of the Flash Crash, contributing to an eventual evaporation of liquidity. A more ambitious approach still would be to develop a system-wide model of financial market interaction. Cliff (2010) describes the trading infrastructure as an example of a “sociotechnical system of systems”. These involve a complex fusion between technology and human behaviour. This interaction increases the system’s vulnerability to catastrophic failure. He proposes a “test rig” for such systems, using simulation techniques to unearth potential systemic fault-lines. These techniques have already been applied to other large socio-technical systems, such as defence, space and weather systems. In each case, there have been some successes. The lessons from these exercises seem to be twofold. First, that although technology may pose a problem, it may also provide the solution. Second, that even if it ain’t broke, there is a compelling strong case for fixing it. Not to do so today runs too great a risk of catastrophic failure tomorrow. We do not need to await a second Flash Crash to establish it was no fluke. To wait is to normalise deviance. (b)  Modifying market macrostructure  Regulators in the US and Europe are in the process of reviewing regulatory rules for trading. In the US, some changes to market rules have already been implemented, while others are the subject of ongoing research. 29 In Europe, a review is underway of MiFID with an early set of proposals tabled.

One variant of these arbitrage strategies exploits pricing differences between common securities quoted on competing trading platforms. For that reason, HFT firms tend to have their tentacles spread across multiple trading venues, arbitraging tiny differences in price (Chart 7). These strategies have grown up as a direct response to the fragmentation of trading infrastructures. In other words, HFT is at least in part the (possibly unplanned) progeny of regulators pursuing competitive ends. The ascent of HFT goes a long way towards explaining the rise in equity market turnover in the major equity markets and in particular the rise in number, and fall in the average size, of trades executed. Put differently, the trading behaviour of HFT has contributed to the downward fall in the average duration of stock holdings. HFT holding periods lie in a narrow time range. The upper bound is perhaps around one day. The lower bound is a perpetual downward motion machine, as computing capacity compresses the timeline for trading. A decade ago, execution times on some electronic trading platforms dipped decisively below the one second barrier. As recently as a few years ago, trade execution times reached “blink speed” – as fast as the blink of an eye. At the time that seemed eye-watering, at around 300–400 milli-seconds or less than a third of a second. But more recently the speed limit has shifted from milli-seconds to micro-seconds – millionths of a second. Several trading platforms now offer trade execution measured in micro-seconds (Table 1).