you sit in your hotel rooms poring over it. ) frankfurt has recently started making inroads into liffe ’ s share of bund futures business - but the level of activity on liffe nonetheless continues to increase. our assessment is that, in these markets, there is a considerable and long - term advantage inherent in being the first mover. that helped liffe to achieve a very broad and international membership, with only 27 per cent of members being uk - based. it has meant that london has an established skill base and good support functions in law and accountancy. also a good telecommunications system - though fewer of those old telephone boxes, which may be a problem for me at super - sib. london also has a strong clearing function and we should not forget the advantage of the english language, which is increasingly the lingua franca of the european union, and i believe that even some americans can now speak a kind of pidgin version which allows them to be understood. but emu will create change. this raises three interesting questions. what will be traded in an emu environment? how much will be traded? and where will the new instruments be traded? let me take these points in turn. what will be traded when the euro makes its debut? looking first at on - exchange markets, it seems likely that, in emu, there will be room for only one three - month euro short - term interest rate futures contract, although the greater depth of the new euro market may allow other products at the short end of the yield curve, such as a one - month euro contract, to co - exist with the three - month benchmark product. in the bond markets, one - and perhaps the most likely outcome - is that a particular government ’ s bonds will become the benchmark for the new euro bond market. we may all speculate idly on which that country might be. these issues would then anchor the euro yield curve and futures contracts would follow naturally. the greater depth of the new euro bond market may well mean that it can support a greater range of futures contracts further along its yield curve, as is the case now in the us. five and two - year contracts, which do already exist in the bund market, may develop further. the exchanges themselves recognise this point and are seeking to fill in the yield curve in their various markets before the start of emu. other national bond markets will be keen to run alongside the main market and futures contracts

loan to were calibrated with a 2013 would have not transparency exercise ) reduce uk mortgage ’ observed in other value ( based on eba flat correlation factor of indexed loan to value european countries for benchmarking exercise 20 % and not 15 % ( i. e. if house price had their national in 2018 ) mortgages in that year stayed constant since 2013 ) source : eba transparency exercise 2016, eba benchmarking exercise 2018 ( article 78 of the crd ), and bank of england ’ s calcula tions. chart 8 : capital held against a recent margin loan exposure shows wide dispersion across firms source : bank of england note : box and whisker plot of margin loan rwa data. whiskers denote 0 % ( the minimum ) and 100 % ( maximum ) value. edges of box d enote 25th percentile ( rwas 11 % of exposure ) and 75th percentile ( rwas 91 % of exposure ). horizontal line denotes 50th percentile ( rwas 26 % of exposure ) all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx chart 9 : leverage ratios in 2018 could be lower if we measured activity such as collateral swaps differently impact of measuring activity differently on aggregate leverage ratio of sample banks 6 % 5 % 5. 34 % 0. 53 % 0. 68 % 0. 11 % 4 % 4. 02 % 3 % 2 % 1 % 0 % current leverage ratio ( reported ) collateral swaps netted repo synthetic pb leverage ratio ( incl. all potential'missing'leverage ) impact using worst case assumptions source : bank of england note : banks in sample include large uk banks and large overseas investment firms all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx