Making Markets Fair and Effective Dr Minouche Shafik Deputy - - PowerPoint PPT Presentation

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Jun 08, 2023 400 likes •471 views

Department of Economics, Centre for Macroeconomics, Systemic Risk Centre and International Growth Centre public lecture Making Markets Fair and Effective Dr Minouche Shafik Deputy Governor, Bank of England Professor Lord Stern Chair, LSE

SLIDE 1

Making Markets Fair and Effective

Dr Minouche Shafik

Deputy Governor, Bank of England

Department of Economics, Centre for Macroeconomics, Systemic Risk Centre and International Growth Centre public lecture

Professor Lord Stern

Chair, LSE Suggested hashtag for Twitter users: #LSEBoE

SLIDE 2

Figure 1 - Global financial assets

Source: McKinsey and IMF. Bond values are at end-year, constant 2013 exchange rates, based on a sample

f 183 countries.

20 40 60 80 100 120 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 Corporate bonds Financial companies' bonds Government bonds Nominal world GDP US$ trillions

SLIDE 3

Figure 2 - Market value of FICC derivatives contracts

5 10 15 20 25 30 35 Jun 98 Jun 00 Jun 02 Jun 04 Jun 06 Jun 08 Jun 10 Jun 12 Other Credit default swaps Commodity contracts Interest rate contracts Foreign exchange contracts US$ trillions

Source: BIS semiannual survey of OTC derivatives.

SLIDE 4

Potential source

f vulnerability

Possible responses by Market Firm Individual Regulator/ Legislator Structure Market microstructure Competition and market discipline Benchmarks Conduct Standards of market practice Responsibilities, governance and incentives Surveillance and penalties

Figure 3 – The Review framework