This document provides an overview of the work several international standard-setting bodies have done regarding crypto-assets. The Financial Stability Board has developed a framework to monitor crypto-assets and potential financial stability risks. The Committee on Payments and Market Infrastructures has conducted work on distributed ledger technology and is monitoring payment innovations. The International Organization of Securities Commissions is establishing networks to discuss initial coin offerings and developing guidance. The Basel Committee is quantifying bank exposures and clarifying regulatory treatment of crypto-assets. Collectively, this work aims to identify and mitigate risks to markets and stability from crypto-assets.
Crypto-Assets: Implications for financial stability, monetary policy, and pay...eraser Juan José Calderón
Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures
Occasional Paper Series. No 223 / May 2019.
Abstract
This paper summarises the outcomes of the analysis of the ECB Crypto-Assets Task
Force. First, it proposes a characterisation of crypto-assets in the absence of a
common definition and as a basis for the consistent analysis of this phenomenon.
Second, it analyses recent developments in the crypto-assets market and unfolding
links with financial markets and the economy. Finally, it assesses the potential impact
of crypto-assets on monetary policy, payments and market infrastructures, and
financial stability. The analysis shows that, in the current market, crypto-assets’ risks
or potential implications are limited and/or manageable on the basis of the existing
regulatory and oversight frameworks. However, this assessment is subject to change
and should not prevent the ECB from continuing to monitor crypto-assets, raise
awareness and develop preparedness.
Keywords: crypto-assets, characterisation, monitoring, crypto-assets risks
JEL codes: E42, G21, G23, O33
The document discusses the concept of regulatory arbitrage, which is exploiting differences in regulations across jurisdictions to avoid unfavorable rules. It provides definitions of regulatory arbitrage and examines how it applies to various financial markets and actors. Specifically, it looks at potential regulatory arbitrage in the derivatives markets, among European banks, and for multinational corporations in their financing activities.
The municipal securities market is a $3.6 trillion industry that funds local capital projects through bonds. Although influential, it faces less regulation than other markets. A key regulation requires continual disclosure of financial documents to the MSRB database, allowing individual investors to research investments. However, critics argue continual disclosure adds costs without benefits given the market's low default rates and diversity. An effective approach balances transparency and growth.
The document provides summaries of regulatory news from February 2019 across multiple jurisdictions and topics:
1) It addresses upcoming issues with implementing aspects of EMIR Refit and discusses reports from ESAs on regulatory sandboxes and innovation hubs. Updated bank risk dashboards show improved capital ratios but weak profitability.
2) New standards for market risk are announced with a simplified approach for smaller banks. EBA and ESMA reports address crypto-asset regulations and need for an EU-wide approach. Another report finds investment costs significantly reduce returns.
3) Draft delegated regulations on sustainable finance and sector views from FCA are published. Guidance is provided on exposures associated with high risk and on ESG disclosure. Reviews
The document discusses a panel on shadow banking and money market funds. It summarizes the remarks of several panelists:
- Graham Bishop expressed support for shadow banking but dislike of the term.
- Kay Swinburne argued shadow banking is an essential source of capital and not unregulated.
- Anastasia Nesvetailova described the origin and evolution of shadow banking and argued it is a complex financial phenomenon.
- David Carruthers supported transparency efforts but noted regulatory actions require consideration.
- Gareth Murphy argued shadow banking should be monitored to address data gaps and support financial stability.
The panels discussed terminology issues, data gaps, and regulatory approaches regarding shadow banking and money market funds.
White Paper: Key Compliance Challenges in Cross-Border PaymentsPayoneer
Businesses initiating cross-border payments are subject to multiple payment regulations in both the originating country and the country in which they land.
The costs of non-compliance can be severe, including failed payments, fines, reputational damage and in severe cases, imprisonment.
In this white paper you'll learn:
About cross-border regulations and why should you care
What local regulations and bodies you should know about
How to adopt a risk-based approach in order to be compliant
What to include in your Risk & Compliance Program checklist
KCG Holdings is a U.S.-based financial firm that specializes in electronic trading across multiple asset classes. KCG utilizes sophisticated trading technologies and models to facilitate trading between market participants. While relatively small, KCG accounts for over 15% of daily U.S. equity trading volume. KCG engages in both principal trading as a market maker and agency-based trading on behalf of clients. KCG's focus on continuous technological investment and specialization in trading allows it to maintain a low cost structure compared to larger financial institutions.
Crypto-Assets: Implications for financial stability, monetary policy, and pay...eraser Juan José Calderón
Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures
Occasional Paper Series. No 223 / May 2019.
Abstract
This paper summarises the outcomes of the analysis of the ECB Crypto-Assets Task
Force. First, it proposes a characterisation of crypto-assets in the absence of a
common definition and as a basis for the consistent analysis of this phenomenon.
Second, it analyses recent developments in the crypto-assets market and unfolding
links with financial markets and the economy. Finally, it assesses the potential impact
of crypto-assets on monetary policy, payments and market infrastructures, and
financial stability. The analysis shows that, in the current market, crypto-assets’ risks
or potential implications are limited and/or manageable on the basis of the existing
regulatory and oversight frameworks. However, this assessment is subject to change
and should not prevent the ECB from continuing to monitor crypto-assets, raise
awareness and develop preparedness.
Keywords: crypto-assets, characterisation, monitoring, crypto-assets risks
JEL codes: E42, G21, G23, O33
The document discusses the concept of regulatory arbitrage, which is exploiting differences in regulations across jurisdictions to avoid unfavorable rules. It provides definitions of regulatory arbitrage and examines how it applies to various financial markets and actors. Specifically, it looks at potential regulatory arbitrage in the derivatives markets, among European banks, and for multinational corporations in their financing activities.
The municipal securities market is a $3.6 trillion industry that funds local capital projects through bonds. Although influential, it faces less regulation than other markets. A key regulation requires continual disclosure of financial documents to the MSRB database, allowing individual investors to research investments. However, critics argue continual disclosure adds costs without benefits given the market's low default rates and diversity. An effective approach balances transparency and growth.
The document provides summaries of regulatory news from February 2019 across multiple jurisdictions and topics:
1) It addresses upcoming issues with implementing aspects of EMIR Refit and discusses reports from ESAs on regulatory sandboxes and innovation hubs. Updated bank risk dashboards show improved capital ratios but weak profitability.
2) New standards for market risk are announced with a simplified approach for smaller banks. EBA and ESMA reports address crypto-asset regulations and need for an EU-wide approach. Another report finds investment costs significantly reduce returns.
3) Draft delegated regulations on sustainable finance and sector views from FCA are published. Guidance is provided on exposures associated with high risk and on ESG disclosure. Reviews
The document discusses a panel on shadow banking and money market funds. It summarizes the remarks of several panelists:
- Graham Bishop expressed support for shadow banking but dislike of the term.
- Kay Swinburne argued shadow banking is an essential source of capital and not unregulated.
- Anastasia Nesvetailova described the origin and evolution of shadow banking and argued it is a complex financial phenomenon.
- David Carruthers supported transparency efforts but noted regulatory actions require consideration.
- Gareth Murphy argued shadow banking should be monitored to address data gaps and support financial stability.
The panels discussed terminology issues, data gaps, and regulatory approaches regarding shadow banking and money market funds.
White Paper: Key Compliance Challenges in Cross-Border PaymentsPayoneer
Businesses initiating cross-border payments are subject to multiple payment regulations in both the originating country and the country in which they land.
The costs of non-compliance can be severe, including failed payments, fines, reputational damage and in severe cases, imprisonment.
In this white paper you'll learn:
About cross-border regulations and why should you care
What local regulations and bodies you should know about
How to adopt a risk-based approach in order to be compliant
What to include in your Risk & Compliance Program checklist
KCG Holdings is a U.S.-based financial firm that specializes in electronic trading across multiple asset classes. KCG utilizes sophisticated trading technologies and models to facilitate trading between market participants. While relatively small, KCG accounts for over 15% of daily U.S. equity trading volume. KCG engages in both principal trading as a market maker and agency-based trading on behalf of clients. KCG's focus on continuous technological investment and specialization in trading allows it to maintain a low cost structure compared to larger financial institutions.
This document is a green paper from the European Commission on shadow banking. It provides context on shadow banking and outlines some of the key risks and challenges related to its oversight and regulation. Some of the main points include:
- Defining shadow banking as credit intermediation involving entities and activities outside the regular banking system.
- Identifying potential shadow banking entities like special investment vehicles and money market funds.
- Noting the growth of shadow banking and estimating its global size at €46 trillion in 2010.
- Describing some of the risks shadow banking can pose like runs, leverage, and circumventing rules.
- Highlighting challenges for authorities in monitoring shadow banking given its complexity and lack of data.
The document discusses the Futures & Options Expo 2000 conference which covered regulatory changes in the futures industry, including proposed legislation to modernize regulation. It also discusses the Chicago Mercantile Exchange's new business-to-business initiative and partnerships, as well as issues facing the managed futures sector. The conference showed the ongoing transformation in the futures industry driven by globalization, technology changes, and deregulation.
This document discusses barriers that non-bank remittance service providers face in accessing payment systems in sending countries. It conducted a survey of over 50 non-bank providers to understand their difficulties in obtaining bank accounts. Common problems included inability to open accounts, lack of consistency in AML/CFT standards across jurisdictions, and banks' risk-averse attitudes. Potential solutions proposed include establishing country-level task forces, improving regulatory oversight, enacting common standards, and allowing specialized remittance banks or microfinance institutions to offer these services. The document aims to provide guidance to reform efforts and facilitate efficient remittance flows globally.
The document is a mutual evaluation report on anti-money laundering and counter-terrorist financing measures in Pakistan from October 2019. It provides ratings on Pakistan's effectiveness and technical compliance in various areas. For effectiveness, Pakistan was rated as low for 11 immediate outcomes related to understanding risks, supervision, applying preventive measures, investigating offenses, and preventing terrorist financing. For technical compliance, Pakistan received largely compliant, partially compliant and non-compliant ratings for 40 recommendations across several domains including criminalization, preventive measures, and international cooperation.
The Dodd Frank & Derivatives market - Chapter 09Khader Shaik
The Dodd-Frank Act introduced major reforms to the US financial system in 2010 following the 2008 crisis. It established new regulations for the derivatives market, including standardized products being traded on electronic platforms and cleared through central counterparties. Key market players like swap dealers and major swap participants must register with the CFTC or SEC. The Act introduced new entities like swap execution facilities, trade repositories, and designated clearing organizations. It also included provisions like the Volcker Rule and push-out rule to restrict certain bank activities and systemic risk. Overall, the reforms aimed to increase transparency, oversight, and stability in the derivatives market.
This document is a mutual evaluation report on anti-money laundering and counter-terrorist financing measures in Mauritania. It finds that Mauritania has a low level of effectiveness in 11 immediate outcomes related to combating money laundering and terrorist financing. It also rates Mauritania as non-compliant or partially compliant on most technical compliance requirements, with low levels of implementation and enforcement of its anti-money laundering and counter-terrorist financing system.
WG Consulting held an early morning breakfast seminar at the Houston Junior League to discuss the Dodd-Frank Compliance landscape as it currently stands as is expected to shape out--and how that effects energy businesses of all sizes today.
The document discusses the Financial Action Task Force (FATF), an inter-governmental body formed in the late 1980s to combat money laundering. It summarizes FATF's role in developing anti-money laundering and countering the financing of terrorism standards and recommendations. It also discusses Pakistan's placement on FATF's grey list in 2018 and the economic and social impacts, as well as initiatives taken by Pakistan and its central bank to strengthen its AML/CFT regime.
1) The document discusses the interconnectedness of India's financial system and bilateral exposures between different entities. Scheduled commercial banks have the largest bilateral exposures, accounting for 44.6% of total lending and borrowing in the system.
2) Non-banking financial companies are the largest net borrowers of funds from the financial system, obtaining over half their funds from scheduled commercial banks. Asset management companies and insurance companies are the largest net providers of funds.
3) Stress tests on individual non-banking financial companies and the sector as a whole show that a certain percentage would fail to meet minimum capital requirements under different shock scenarios relating to non-performing assets and credit risks.
Securities Clearing and Settlement Systems and Long Term Local Currency Bond ...SDGsPlus
The document discusses trends in long-term local currency bond markets after the 2008 financial crisis. It notes that direct bank lending to emerging markets has declined while bond market inflows have increased. Local currency bond markets and domestic capital markets have potential to play a greater role in long-term financing. Clearing and settlement infrastructure is essential to develop long-term local currency bond markets by mitigating risk, facilitating liquidity, and supporting access by international investors. While clearing and settlement systems generally functioned well during the crisis, areas for improvement include risk management, governance, and cooperation across authorities.
The document discusses the challenges of capital market regulation in Nigeria. It describes events like the 2007 bank consolidation policy, Nigeria's capital market crisis in 2008, and the global financial crisis that impacted the Nigerian market. Some key challenges discussed include companies failing to comply with financial disclosure requirements, weaknesses in the regulatory framework being exposed, and a lack of collaboration between regulators. Effective regulation is presented as important for capital markets to function in a transparent, fair and risk-reduced manner.
Financial Transfer Pricing - loan. Case History n.1.Transfer Pricing
The parent company of a multinational group operating in the financial sector granted intercompany loans to its subsidiaries, including the Italian company, in order to provide them with liquidity necessary to provide loans to their customers.
EPS Liquidity Risk Management Implementation for FBOs-client presentationsarojkdas
The document discusses the liquidity risk management requirements under the Enhanced Prudential Standards (EPS) for foreign banking organizations operating in the US. It notes that the EPS placed significant emphasis on liquidity risk management and clarified roles for risk committees and CROs. It also reinforced stress testing, contingency funding plans, limits monitoring, and buffer requirements. Transitioning to comply will require enhancements to governance frameworks, cash flow projections, stress testing, and internal controls. Meeting the requirements will impact branches, BHCs, and intermediate holding companies.
The Volcker Rule: Its Implications and AftereffectsHEXANIKA
The Volcker Rule is named after Paul A. Volcker, chairman of the Federal Reserve during the 1980s and an elder statesman of the financial world. He acted as an advisor for President Obama in 2008 and was instrumental in the passing and creation of the Rule. It aims to prevent large banks from engaging in speculative trading activity with the idea that important banks support the economy by lending to consumers and businesses. We briefly explain the Volcker Rule, the challenges it brings to banks and how they can be addressed:
This document discusses how moving over-the-counter (OTC) derivatives contracts to central counterparties (CCPs) would require large increases in posted collateral from large banks. It estimates that up to $2 trillion of counterparty risk in the OTC derivatives market is currently under-collateralized. CCPs would require full collateralization of positions, so offloading contracts to CCPs would significantly increase collateral needs for large banks. The document also notes concentration risks if only standardized contracts are cleared through CCPs, rather than the full portfolio. It concludes regulators may need to incentivize moving contracts through capital requirements on remaining bilateral positions.
Monday April 9 2012 - Top 10 risk and compliance management related news stor...Compliance LLC
The document summarizes the results of the Basel III monitoring exercise as of June 30, 2011 conducted by the Basel Committee on Banking Supervision and the European Banking Authority. A total of 158 European banks submitted data, consisting of 48 large internationally active banks (Group 1) and 110 other banks (Group 2). The results showed a shortfall of liquid assets of €1.15 trillion, representing 3.7% of total assets of €31 trillion, if banks made no changes to their liquidity risk profile. The monitoring assessed the impact of the new Basel III capital and liquidity requirements and compared results to current national implementations of Basel II.
Basel norms and bcci scam and international bankingGulshan Poddar
The document discusses regulation of international banking and the Basel Committee. The Basel Committee was formed in 1974 to enhance supervision of international banks and close gaps in supervision. It works to set standards but has no legal authority. Its members include major countries. The committee aims to ensure no bank escapes supervision and supervision is adequate. It issued core banking principles in 1997. Basel III was agreed in 2010-2011 to strengthen bank capital, liquidity, and decrease leverage in response to the financial crisis.
Payment System Interoperability and Oversight: The International DimensionITU
Technical Report of ITU-T Focus Group on Digital Financial Services
"Payment System Interoperability and Oversight:
The International Dimension"
Author : Biagio Bossone
This report considers the implications of Payment System Infrastrucutres (PSI) interlinking and international interoperability for central bank oversight policy, and elaborates on a set of principles that complement those
developed in the companion report. The principles cover some critical institutional aspects which underpin the establishment of international interoperability agreements, as well as the planning and implementation stages of the agreements, and their sustainability. National public authorities and private sector stakeholders should consider adopting these principles when establishing international interoperability agreements.
The document discusses the proposed European Union Financial Transaction Tax (EUFTT). Supporters believe it will reduce speculative trading, but critics argue it could have unintended consequences like a "cascade effect" where investors are taxed multiple times on linked transactions, increasing costs for financial institutions and their customers. While the EUFTT aims to ensure the financial sector contributes to costs of the crisis and prevents market fragmentation, some argue it would be difficult to implement and does not address the root causes of financial crises occurring from flaws in the existing system.
The purpose of this directory, which the FSB has delivered to the April 2019 G20 Finance Ministers and Central Bank Governors meeting, is to provide information on the relevant regulators and other authorities in FSB jurisdictions and standard-setting bodies who are dealing with crypto-assets issues, and the aspects covered by them. Contacts information with regard to the below functions has been shared among the authorities mentioned.1.
Https://digitalis.id
S26: Techsauce | A New World of FinTech Regulation: What the Future Holds (23...Kullarat Phongsathaporn
The document discusses trends in financial technology (FinTech) regulation. It notes that regulators must balance financial stability, consumer protection, and innovation. New technologies are transforming finance but also present risks. The document outlines regulatory challenges from technologies like blockchain, cryptocurrencies, and cloud computing. It predicts regulators will support FinTech through sandboxes and holistic frameworks while addressing issues like cybersecurity, data privacy, and cross-border consistency.
This document is a green paper from the European Commission on shadow banking. It provides context on shadow banking and outlines some of the key risks and challenges related to its oversight and regulation. Some of the main points include:
- Defining shadow banking as credit intermediation involving entities and activities outside the regular banking system.
- Identifying potential shadow banking entities like special investment vehicles and money market funds.
- Noting the growth of shadow banking and estimating its global size at €46 trillion in 2010.
- Describing some of the risks shadow banking can pose like runs, leverage, and circumventing rules.
- Highlighting challenges for authorities in monitoring shadow banking given its complexity and lack of data.
The document discusses the Futures & Options Expo 2000 conference which covered regulatory changes in the futures industry, including proposed legislation to modernize regulation. It also discusses the Chicago Mercantile Exchange's new business-to-business initiative and partnerships, as well as issues facing the managed futures sector. The conference showed the ongoing transformation in the futures industry driven by globalization, technology changes, and deregulation.
This document discusses barriers that non-bank remittance service providers face in accessing payment systems in sending countries. It conducted a survey of over 50 non-bank providers to understand their difficulties in obtaining bank accounts. Common problems included inability to open accounts, lack of consistency in AML/CFT standards across jurisdictions, and banks' risk-averse attitudes. Potential solutions proposed include establishing country-level task forces, improving regulatory oversight, enacting common standards, and allowing specialized remittance banks or microfinance institutions to offer these services. The document aims to provide guidance to reform efforts and facilitate efficient remittance flows globally.
The document is a mutual evaluation report on anti-money laundering and counter-terrorist financing measures in Pakistan from October 2019. It provides ratings on Pakistan's effectiveness and technical compliance in various areas. For effectiveness, Pakistan was rated as low for 11 immediate outcomes related to understanding risks, supervision, applying preventive measures, investigating offenses, and preventing terrorist financing. For technical compliance, Pakistan received largely compliant, partially compliant and non-compliant ratings for 40 recommendations across several domains including criminalization, preventive measures, and international cooperation.
The Dodd Frank & Derivatives market - Chapter 09Khader Shaik
The Dodd-Frank Act introduced major reforms to the US financial system in 2010 following the 2008 crisis. It established new regulations for the derivatives market, including standardized products being traded on electronic platforms and cleared through central counterparties. Key market players like swap dealers and major swap participants must register with the CFTC or SEC. The Act introduced new entities like swap execution facilities, trade repositories, and designated clearing organizations. It also included provisions like the Volcker Rule and push-out rule to restrict certain bank activities and systemic risk. Overall, the reforms aimed to increase transparency, oversight, and stability in the derivatives market.
This document is a mutual evaluation report on anti-money laundering and counter-terrorist financing measures in Mauritania. It finds that Mauritania has a low level of effectiveness in 11 immediate outcomes related to combating money laundering and terrorist financing. It also rates Mauritania as non-compliant or partially compliant on most technical compliance requirements, with low levels of implementation and enforcement of its anti-money laundering and counter-terrorist financing system.
WG Consulting held an early morning breakfast seminar at the Houston Junior League to discuss the Dodd-Frank Compliance landscape as it currently stands as is expected to shape out--and how that effects energy businesses of all sizes today.
The document discusses the Financial Action Task Force (FATF), an inter-governmental body formed in the late 1980s to combat money laundering. It summarizes FATF's role in developing anti-money laundering and countering the financing of terrorism standards and recommendations. It also discusses Pakistan's placement on FATF's grey list in 2018 and the economic and social impacts, as well as initiatives taken by Pakistan and its central bank to strengthen its AML/CFT regime.
1) The document discusses the interconnectedness of India's financial system and bilateral exposures between different entities. Scheduled commercial banks have the largest bilateral exposures, accounting for 44.6% of total lending and borrowing in the system.
2) Non-banking financial companies are the largest net borrowers of funds from the financial system, obtaining over half their funds from scheduled commercial banks. Asset management companies and insurance companies are the largest net providers of funds.
3) Stress tests on individual non-banking financial companies and the sector as a whole show that a certain percentage would fail to meet minimum capital requirements under different shock scenarios relating to non-performing assets and credit risks.
Securities Clearing and Settlement Systems and Long Term Local Currency Bond ...SDGsPlus
The document discusses trends in long-term local currency bond markets after the 2008 financial crisis. It notes that direct bank lending to emerging markets has declined while bond market inflows have increased. Local currency bond markets and domestic capital markets have potential to play a greater role in long-term financing. Clearing and settlement infrastructure is essential to develop long-term local currency bond markets by mitigating risk, facilitating liquidity, and supporting access by international investors. While clearing and settlement systems generally functioned well during the crisis, areas for improvement include risk management, governance, and cooperation across authorities.
The document discusses the challenges of capital market regulation in Nigeria. It describes events like the 2007 bank consolidation policy, Nigeria's capital market crisis in 2008, and the global financial crisis that impacted the Nigerian market. Some key challenges discussed include companies failing to comply with financial disclosure requirements, weaknesses in the regulatory framework being exposed, and a lack of collaboration between regulators. Effective regulation is presented as important for capital markets to function in a transparent, fair and risk-reduced manner.
Financial Transfer Pricing - loan. Case History n.1.Transfer Pricing
The parent company of a multinational group operating in the financial sector granted intercompany loans to its subsidiaries, including the Italian company, in order to provide them with liquidity necessary to provide loans to their customers.
EPS Liquidity Risk Management Implementation for FBOs-client presentationsarojkdas
The document discusses the liquidity risk management requirements under the Enhanced Prudential Standards (EPS) for foreign banking organizations operating in the US. It notes that the EPS placed significant emphasis on liquidity risk management and clarified roles for risk committees and CROs. It also reinforced stress testing, contingency funding plans, limits monitoring, and buffer requirements. Transitioning to comply will require enhancements to governance frameworks, cash flow projections, stress testing, and internal controls. Meeting the requirements will impact branches, BHCs, and intermediate holding companies.
The Volcker Rule: Its Implications and AftereffectsHEXANIKA
The Volcker Rule is named after Paul A. Volcker, chairman of the Federal Reserve during the 1980s and an elder statesman of the financial world. He acted as an advisor for President Obama in 2008 and was instrumental in the passing and creation of the Rule. It aims to prevent large banks from engaging in speculative trading activity with the idea that important banks support the economy by lending to consumers and businesses. We briefly explain the Volcker Rule, the challenges it brings to banks and how they can be addressed:
This document discusses how moving over-the-counter (OTC) derivatives contracts to central counterparties (CCPs) would require large increases in posted collateral from large banks. It estimates that up to $2 trillion of counterparty risk in the OTC derivatives market is currently under-collateralized. CCPs would require full collateralization of positions, so offloading contracts to CCPs would significantly increase collateral needs for large banks. The document also notes concentration risks if only standardized contracts are cleared through CCPs, rather than the full portfolio. It concludes regulators may need to incentivize moving contracts through capital requirements on remaining bilateral positions.
Monday April 9 2012 - Top 10 risk and compliance management related news stor...Compliance LLC
The document summarizes the results of the Basel III monitoring exercise as of June 30, 2011 conducted by the Basel Committee on Banking Supervision and the European Banking Authority. A total of 158 European banks submitted data, consisting of 48 large internationally active banks (Group 1) and 110 other banks (Group 2). The results showed a shortfall of liquid assets of €1.15 trillion, representing 3.7% of total assets of €31 trillion, if banks made no changes to their liquidity risk profile. The monitoring assessed the impact of the new Basel III capital and liquidity requirements and compared results to current national implementations of Basel II.
Basel norms and bcci scam and international bankingGulshan Poddar
The document discusses regulation of international banking and the Basel Committee. The Basel Committee was formed in 1974 to enhance supervision of international banks and close gaps in supervision. It works to set standards but has no legal authority. Its members include major countries. The committee aims to ensure no bank escapes supervision and supervision is adequate. It issued core banking principles in 1997. Basel III was agreed in 2010-2011 to strengthen bank capital, liquidity, and decrease leverage in response to the financial crisis.
Payment System Interoperability and Oversight: The International DimensionITU
Technical Report of ITU-T Focus Group on Digital Financial Services
"Payment System Interoperability and Oversight:
The International Dimension"
Author : Biagio Bossone
This report considers the implications of Payment System Infrastrucutres (PSI) interlinking and international interoperability for central bank oversight policy, and elaborates on a set of principles that complement those
developed in the companion report. The principles cover some critical institutional aspects which underpin the establishment of international interoperability agreements, as well as the planning and implementation stages of the agreements, and their sustainability. National public authorities and private sector stakeholders should consider adopting these principles when establishing international interoperability agreements.
The document discusses the proposed European Union Financial Transaction Tax (EUFTT). Supporters believe it will reduce speculative trading, but critics argue it could have unintended consequences like a "cascade effect" where investors are taxed multiple times on linked transactions, increasing costs for financial institutions and their customers. While the EUFTT aims to ensure the financial sector contributes to costs of the crisis and prevents market fragmentation, some argue it would be difficult to implement and does not address the root causes of financial crises occurring from flaws in the existing system.
The purpose of this directory, which the FSB has delivered to the April 2019 G20 Finance Ministers and Central Bank Governors meeting, is to provide information on the relevant regulators and other authorities in FSB jurisdictions and standard-setting bodies who are dealing with crypto-assets issues, and the aspects covered by them. Contacts information with regard to the below functions has been shared among the authorities mentioned.1.
Https://digitalis.id
S26: Techsauce | A New World of FinTech Regulation: What the Future Holds (23...Kullarat Phongsathaporn
The document discusses trends in financial technology (FinTech) regulation. It notes that regulators must balance financial stability, consumer protection, and innovation. New technologies are transforming finance but also present risks. The document outlines regulatory challenges from technologies like blockchain, cryptocurrencies, and cloud computing. It predicts regulators will support FinTech through sandboxes and holistic frameworks while addressing issues like cybersecurity, data privacy, and cross-border consistency.
This presentation was shared by Cab Morris of the Illinois Department of Financial & Professional Regulation on the June 5th at the Banking Digital Currencies seminar.
Technical Report of ITU-T Focus Group on Digital Financial Services : Payment System Oversight and Interoperability
Author : Biagio Bossone
The report describes the foundations of
payment system oversight and considers how oversight policy should apply to interoperability in
retail payment systems. Building on existing international standards for financial market
infrastructures, the report elaborates policy principles for public authorities, payment system
operators, and payment service providers to ensure that the risks associated with interoperability are
managed effectively. Important in this context is the cooperation between relevant authorities, both
domestically and internationally, and their effort to cooperate effectively not just in normal
circumstances, but, especially, during crisis situations.
This document discusses key financial regulations and trends, and how technology can help financial institutions comply with regulatory reporting requirements. It outlines several major regulations including FATCA, Dodd Frank Act, Basel III, FINRA, AML, KYC, and MiFID. For each regulation, it provides high-level details on requirements and highlights. It also discusses challenges of regulatory compliance and how technology can help with tasks like data management, analytics, reporting automation and process consolidation to improve regulatory reporting.
Article 1 of the Banque du Liban Basic Circular no. 128 (Beirut, January 12, 2013) (the Circular) states that Banks and Financial Institutions (BFIs) must establish a Compliance Department (CD) comprising of: (1) a Legal Compliance Unit; and (2) an Anti-Money Laundering (AML)/Counter the Financing of Terrorism (CFT) Compliance Unit (AML/CFT Compliance Unit).
Article 3 of the Circular specifies that the Head of the Legal Compliance Unit must have the required competences and hold, at least, a law degree; it must also have the required knowledge and expertise in the field of banking and financial services laws and legislations in force in Lebanon and in any country hosting the affiliates of the bank or financial institution, in addition to the required knowledge in banking and financial activities.
This training course has been specifically designed to provide the required knowledge and expertise relating to countries hosting the affiliates of Lebanese banks or financial institutions located within the European Union (EU).
This unique and innovative training course will train attendees in a very broad range of regulatory compliance frameworks that govern Lebanese affiliate BFIs operating in the European Union (EU). On the first day, the first two sessions will provide extensive coverage of EU AML/CFT operational frameworks as well as key AML/CFT areas, such as risk-based approach to money laundering, undertaking extensive due diligence, and AML/CFT policies, conduct risk, and reputational risk and financial damage. The next two sessions will cover the revised Markets in Financial Instruments Directive (MAD 2) and the Market Abuse Regulation (MAR) regulatory compliance frameworks. They will include a review of a range of new insider dealing and market abuse offences, new criminal sanctions and penalties, as well as market abuse prevention, monitoring, and detection. These sessions will also provide a review of a broad range of insider dealing and market abuse behaviours, as well as a select review of past case studies. On the second day, sessions 5 and 6 will provide extensive coverage of the new revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). This includes a review of the new market structure in place across the EU, MiFIR trade and transaction reporting, MiFID II suitability and appropriateness requirements, best execution, recording of telecommunications, and the unbundling of research commissions. The last two sessions will provide broad coverage of central counterparty (CCP) operational frameworks that are in place in the EU. This will include a review of the CCP clearing model, CCP operational practices, and CCP cleared products. In addition, the course will cover CCP operational risk and default risks, as well as providing attendees with a comprehensive understanding of recovery and resolution plans.
The document provides a summary of the current state of cryptocurrency research and identifies open challenges. It conducted a systematic literature review of 25 research articles on cryptocurrency adoption from 2014 to 2017. The results showed that cryptocurrency adoption research has grown significantly in this period but there is still a lack of research on the key factors that influence acceptance of cryptocurrencies. Future studies need to focus on identifying these influential factors to help advance understanding and development of cryptocurrencies.
Regulators are encouraging investment managers to facilitate more private investment in a wider range of assets to help fund small businesses and infrastructure projects. New securities markets are opening up in places like China, the Middle East, and Latin America. Meanwhile, the European Union is pursuing a "Capital Markets Union" initiative to develop capital and securities markets further. The goal is to attract more investment and open up alternative funding sources beyond banks.
Patni wp data management implications of forthcoming systemic risk regulationsPhilip Filleul
Important new agencies established under the Dodd-Frank Act are Financial Stability Oversight Council (FSOC) and the Office of Financial Research (OFR). FSOC will be responsible for identifying risks to financial stability and has authority to designate systemically important financial institutions for heightened regulation. OFR will collect and analyze data to monitor systemic risk and support FSOC and other regulators. The document discusses how OFR may approach its responsibilities to analyze and report on systemic risk, and provides suggestions for how financial firms can prepare for new data reporting requirements.
Principes des monnaies centrales numériques selon le G7Société Tripalio
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3. 1
Executive Summary
At their 19-20 March 2018 meeting in Buenos Aires, G20 Ministers of Finance and Central
Bank Governors called on the FSB to report by July 2018 on its work and that of other standard-
setting bodies (SSBs) on crypto-assets. This note provides an overview of the work of the
Financial Stability Board (FSB), Committee on Payments and Market Infrastructures (CPMI),
International Organization of Securities Commissions (IOSCO) and the Basel Committee on
Banking Supervision (BCBS). The current work can be summarised as follows:
• The FSB, in collaboration with CPMI, has developed a framework and identified
metrics to monitor the financial stability implications of crypto-assets markets.
• CPMI has conducted significant work on applications of distributed ledger technology,
and is conducting outreach, monitoring, and analysis of payment innovations.
• IOSCO has established an initial coin offering (ICO) Consultation Network to discuss
experiences and concerns regarding ICOs, and is developing a Support Framework to
assist members in considering how to address domestic and cross-border issues
stemming from ICOs that could impact investor protection. IOSCO is discussing other
issues around crypto-assets, including, for example, regulatory issues around crypto-
assets platforms.
• The BCBS is quantifying the materiality of banks’ direct and indirect exposures to
crypto-assets, clarifying the prudential treatment of such exposures, and monitoring
developments related to crypto-assets and FinTech for banks and supervisors.
This work is being coordinated among members. Collectively, the work of the FSB and SSBs,
including the Financial Action Task Force (which is reporting separately to the G20), should
help to identify and mitigate risks to consumer and investor protection, market integrity, and
potentially to financial stability.
1. Work by the FSB
In the first quarter of 2018, the FSB discussed potential financial stability implications from
crypto-assets. The FSB agreed that crypto-assets do not pose a material risk to global financial
stability at this time, but supported vigilant monitoring in light of the speed of developments
and data gaps. FSB members requested that the Standing Committee on Assessment of
Vulnerabilities (SCAV) and the CPMI work jointly to develop a framework for monitoring of
financial stability risks related to crypto-assets with a focus on identifying potential metrics.
The FSB Plenary approved the framework at its June meeting in Basel.
The objective of the framework is to identify any emerging financial stability concerns in a
timely manner. To this end, it includes risk metrics that are most likely to highlight such risks,
using data from public sources where available. Supervisory data pertaining to crypto-assets
are potentially more reliable and could complement data from public sources.
The framework discusses the primary risks within crypto-assets and potential transmission
channels to financial stability risks. The framework identifies which metrics the FSB might
usefully monitor in the short-to-medium term, and some monitoring objectives that may provide
4. 2
further insight but would take longer to implement, and may be more appropriate should
potential financial stability concerns increase. The FSB selected metrics for the monitoring
framework based upon several criteria, including comparability over time and across
jurisdictions, ease of access and repeatability, degree to which the metric is anchored in data,
and analytical effort to compute.
The monitoring framework focuses on metrics to assess the transmission channels from crypto-
asset markets to financial stability. In general, monitoring the size and rate of growth of crypto-
asset markets is critical to understanding the potential size of wealth effects, should a decline
in valuations occur. These metrics are currently available (graph 1). The use of leverage, and
financial institution exposures to crypto-asset markets are important metrics of transmission of
crypto-asset risks to the broader financial system. Some derivatives metrics are available, and
metrics on exposures would become part of the monitoring framework to the extent that they
become available.
Confidence effects related to price volatility in crypto-asset markets may be quite important,
but are more difficult to measure except through qualitative market intelligence. Similarly, the
impact of fraud on confidence effects may be very important. The use of crypto-assets for
payment or settlement is another transmission channel to be monitored, together with CPMI.
Previous FSB analyses of crypto-asset markets, including initial coin offerings (ICOs),
highlighted challenges such as rapid developments in these markets, lack of transparency
including around the identity and location of token issuers and the governing law for white
papers, and data gaps. The fragmented nature of crypto-asset markets is another complication.
The crypto-asset market is rapidly evolving, as are public data sources. The treatment and
characterisation of crypto-assets may vary across jurisdictions or may not yet have been
Market capitalisation and transactions in crypto-assets Graph 1
Closing price and market
capitalisation
Price volatility1
Monthly average of daily
transactions2
USD ‘000s USD bn % % Mn USD mn
1
Ninety-day moving standard deviation of daily returns. 2
Total estimated value of transactions on the Bitcoin Blockchain, in USD value.
Sources: coinmarketcap.com; CoinDesk, https://www.coindesk.com/price/; www.blockchain.info; BIS calculations.
5. 3
clarified. Given that the proposed monitoring metrics are mainly based on public data, it should
be stressed that the quality of the underlying data can vary, and might not always be satisfactory.
Furthermore, market-related figures, such as metrics on prices, trading volumes, and volatility
may be manipulated by generally prohibited practices such as “wash trading,”1
“spoofing,”2
and “pump and dump,”3
the existence of which cannot be ruled out at this stage. Moreover, the
proposed metrics may not fit all types of crypto-assets equally. Caution should therefore be
applied when considering data metrics and how to gather, measure and analyse the data
proposed by this framework.
Nonetheless, the FSB believes that the proposed metrics outlined in the Annex provide a useful
picture of crypto-asset markets and the financial stability risks they may present. As
understanding develops and new sources of public data become available, the FSB, with CPMI,
will consider how improvements can be made. In particular, the FSB will – where possible –
continue to work on assessing data reliability and data completeness for the existing metrics.
Additionally, the FSB will assess whether new metrics could be added at a later stage.
2. Update from CPMI on its work
Work to date
The CPMI has a mandate to promote “the safety and efficiency of payment, clearing, settlement
and related arrangements, thereby supporting financial stability and the wider economy.” In
pursuit of its mandate, the CPMI has paid particular attention to innovations in payments.
Following the reports “Innovations in retail payments” (2012)4
and “Non-banks in retail
payments” (2014) the CPMI agreed that there was a need to closely monitor digital currencies
and distributed ledgers. The subsequent report “Digital currencies” (2015)5
noted that “the
development of distributed ledger technology is an innovation with potentially broad
applications” and that “it is recommended that central banks continue monitoring and analysing
the implications of these developments.”
Since then, the CPMI has continued to monitor related developments, and to develop analytical
frameworks and reports to aid central banks in their assessments, frequently partnering with
other SSBs and central bank committees. Published reports include “Distributed ledger
1 “Wash trading” describes trading activity where an investor buys and sells the same financial instrument simultaneously
in order to create misleading market activity and influence the price of an asset, without changing the exposure.
2 “Spoofing” describes the placing of orders with the aim of influencing the price of an asset before revoking them again
prior to their execution.
3 “Pump and dump” involves the artificial inflation of an asset’s price through the use of inaccurate or misleading information
in order to sell the asset at a higher price. When the initiator has sold the overvalued asset, the price falls and other investors
are exposed to losses.
4
CPMI (2012), “Innovations in retail payments,” May.
5
CPMI (2015), “Digital currencies,” November.
6. 4
technology in payment clearing and settlement – An analytical framework” (2017)6
and,
together with the BIS Markets Committee, “Central bank digital currencies” (2018).7
Supplementing the work of the Committee in this area, the CPMI Secretariat have also recently
produced three analytical articles in the BIS’s Quarterly Reviews: “The quest for speed in
payments” (2017), “Central bank cryptocurrencies” (2017), and “Payments are a-changin’ but
cash still rules” (2018).8
The CPMI chairs the Economic Consultative Committee (ECC)’s ad hoc group on digital
innovations. In this group the chairs of innovation working groups from the BCBS, Committee
on the Global Financial System (CGFS), CPMI, International Association of Insurance
Supervisors (IAIS), IOSCO, and FSB update one another and coordinate work through
quarterly calls. Additionally, through a joint working group with IOSCO, the CPMI monitors
innovations in clearing and settlement and their impact on current standards for financial market
infrastructures (FMIs).
Present challenges
Some innovations can present challenges to current standards. The CPMI and IOSCO examined
the “Principles for financial market infrastructures” in April 2018, and did not identify at this
stage any critical issues or gaps for distributed ledger technology-based FMIs.
Innovations can also present opportunities and challenges to established markets and service
providers through increasing competition and choice. The CPMI report “Cross-border retail
payments” (2018)9
assessed the potential efficiencies and risks from market changes in an area
where many private digital tokens have claimed to improve on current arrangements.
New innovations that might add to efficiencies at the cost of safety represent an important
challenge for central banks. Currently, ‘first generation’ private digital tokens (which include
so-called ‘cryptocurrencies’ and crypto-assets) that are totally decentralised and do not
represent a claim or underlying asset, make for unsafe money. Safer central bank issued cash
may be less convenient in an era of electronic payments, and the use of cash is declining in
some jurisdictions.10
At the same time, central banks are reviewing how to improve and
modernise existing central bank operated payment systems. Central banks can encourage and
catalyse improvements to current arrangements, as has happened recently in the field of faster
payments.11
However, responding directly to the challenge with a central bank digital currency
(CBDC) would be an entry into uncharted territory.
6
CPMI (2015), “Distributed ledger technology in payment, clearing and settlement – an analytical framework,” February.
7
CPMI and Markets Committee (2017), “Central bank digital currencies,” March. Central bank digital currencies (CBDC)
are not crypto-assets, which are a type of private digital tokens.
8
Morten Bech, Yuuki Shimizu, and Paul Wong (2017), “The quest for speed in payments,” BIS Quarterly Review, March;
Morten Bech and Rodney Garratt (2017), “Central bank cryptocurrencies,” BIS Quarterly Review, September; Morten
Bech, Umar Faruqui, Frederik Ougaard, and Cristina Picillo (2018), “Payments are a-changin' but cash still rules,” BIS
Quarterly Review, March.
9
CPMI (2018), “Cross-border retail payments,” February.
10
Bech et al. (2018).
11
CPMI (2016), “Fast payments – Enhancing the speed and availability of retail payments,” November.
7. 5
Future work
The CPMI’s workplan for innovation currently contains a number of strands including:
• Outreach, advising central banks to proceed with caution on CBDCs.
• Monitoring of CBDCs and private digital tokens used for payments, including the
development of decentralised tokens with improved technology and/or underlying
assets (so-called ‘second generation cryptocurrencies’). A survey of global central
banks is planned for later in 2018 to further inform the CPMI’s work.
• Analysis, focussing on the safety and efficiency considerations for wholesale digital
currencies (both public and privately issued variants).
The CPMI’s workplan is flexibly designed to accommodate any significant issues as they arise.
However, possible areas for further exploration include legal issues around holding and
transferring digital currencies and the cross-border implications of CBDCs.
3. Update from IOSCO on its work
Initial coin offerings (ICOs)
The IOSCO Board has considered the continuing growth of ICOs at recent Board meetings. It
issued a statement in November 2017 to IOSCO members on the risks of ICOs, including
referencing various approaches to ICOs taken by members and other regulatory bodies. In
January 2018, the IOSCO Board issued a communication to the general public setting out its
concerns in this area.12
IOSCO has also established an ICO Consultation Network through which members discuss
their experiences and bring their concerns, including any cross-border issues, to the attention
of fellow regulators.
In May 2018, the IOSCO Board agreed to develop a Support Framework to provide a resource
for members as they identify regulatory risks arising from ICOs and deal with the issues (both
domestic and cross-border) raised by the offering of ICOs in jurisdictions across the globe. The
ICO Support Framework will build on the resources developed though the ICO Consultation
Network. The ICO Support Framework could potentially provide information to assist
regulators when assessing within their own jurisdictions the nature of an ICO, potential gaps in
investor and market protections between ICOs and conventional securities offerings and
markets, and identifying potential changes to local law that would facilitate consistent standards
of protection between ICOs and conventional securities offerings and markets.
Crypto-asset platforms
Crypto-asset platforms are a growing and evolving part of the crypto-asset ecosystem. Many
regulators have been responding to crypto-asset developments to protect investors and maintain
market integrity. First, issues like whether a traded crypto-asset is a security, commodity, or
some other financial product, or the manner in which such platforms operate, are threshold
questions in the context of financial regulation. Second, so-called “crypto-exchanges” may be
12
IOSCO (2018), “IOSCO Board communication on concerns related to initial coin offerings (ICOs),” 18 January.
8. 6
exchanges that are failing to comply with the laws applicable to exchanges. In some cases, they
may be classified as intermediaries and may also be failing to comply with applicable laws.
Finally, existing regulatory models may rely on access through a regulated entity to support
many investor protection and other regulatory objectives, such as surveillance, but access to
crypto-asset platforms currently may not involve such regulated entities.
At present, like crypto-assets in general, crypto-asset platforms do not pose global financial
stability risks. Nevertheless, they raise other significant concerns, including consumer and
investor protection, market integrity and money laundering/terrorism financing, among others.
Since certain crypto-assets offered on crypto-asset platforms may not be subject to financial
regulation, it is important to coordinate with those other sectoral financial regulators who may
have jurisdiction to address the significant risks arising from such other crypto-asset platforms
and crypto-trading activities. Where crypto-assets are used solely for payment purposes (and
are not securities), crypto-asset platforms trading such assets could, depending on the
jurisdiction, be viewed more as part of the payments infrastructure or as some type of spot
market exchanges. IOSCO therefore would seek to work closely with other SSBs like CPMI
and BCBS to evaluate approaches to these issues.
IOSCO may also consider the issue of crypto-asset platforms that fall (or should fall) within the
remit of securities regulators and consider the issues and risks associated with their operations.
IOSCO’s Committee on Secondary Markets has begun to examine other internet-based
platforms, including crypto-asset platforms. An initial question the Committee may further
explore is whether IOSCO’s Principles for Secondary and Other Markets would be applicable
to crypto-asset platforms. The Committee has also preliminarily identified a number of key
issues it may consider including: (i) transparency; (ii) custody and settlement; (iii) trading; and
(iv) cyber security and systems integrity.
In addition, IOSCO may examine issues around access to platforms as certain crypto-asset
platforms are subject to non-intermediated access. This may raise investor protection concerns
related to fiduciary duties and suitability and know-your-customer obligations that are not
typically responsibilities borne by regulated markets that trade securities. However, this type of
access has been seen in other types of platforms, such as crowdfunding platforms. Crypto-asset
platforms also may raise cross-border challenges similar to those that IOSCO has addressed in
other internet-based financial markets, such as with binary options. In these cases, enforcement
is often difficult because rules governing the instrument, the exchange and any intermediary
may differ across jurisdictions. Authorities can therefore benefit from co-coordination with
regard to supervision and enforcement.
4. Update from BCBS on its work
The BCBS is pursuing a number of policy and supervisory initiatives related to crypto-assets.
Given the number of initiatives taking place across different SSBs and international fora, the
work of the BCBS is focused on aspects related to its mandate to strengthen the regulation,
supervision and practices of banks worldwide, with the purpose of enhancing financial stability.
The BCBS’s initiatives can be grouped into three broad categories: (i) quantifying the
materiality of banks’ direct and indirect exposures to crypto-assets; (ii) clarifying the prudential
9. 7
treatment of banks’ exposures to crypto-assets; and (iii) monitoring developments related to
crypto-assets/FinTech and assessing their implications for banks and supervisors.
Quantifying banks’ exposures to crypto-assets
One challenge encountered in the existing analyses related to crypto-assets is the scarcity of
reliable data on banks’ holdings of crypto-assets. Accordingly, the BCBS is currently
conducting an initial stocktake on the materiality of banks’ direct and indirect exposures to
crypto-assets. In principle, this could be followed by a structured data collection exercise on
crypto-assets as part of the BCBS’s half-yearly Basel III monitoring exercise.13
Prudential treatment of crypto-assets
While the current Basel framework does not set out an explicit treatment of banks’ exposures
to crypto-assets, it does set out minimum requirements for the capital and liquidity treatment of
“other assets”. The BCBS is conducting a stocktake of how its members currently treat such
exposures as part of their domestic prudential rules. Based on the results of this stocktake and
the aforementioned quantitative analyses, the BCBS will consider whether to formally clarify
the prudential treatment of crypto-assets across the set of risk categories (credit risk,
counterparty credit risk, market risk, liquidity risk, etc.).
Monitoring and assessing crypto-asset and FinTech developments
The BCBS is continuing to monitor developments related to FinTech, following the publication
of its “Sound Practices on the implications of FinTech developments for banks and bank
supervisors” in February 2018.14
13
See https://www.bis.org/bcbs/qis/.
14
BCBS (2018), “Sound Practices: implications of fintech developments for banks and bank supervisors,” February 2018.
10. 8
Annex – Metrics to be initially monitored by the FSB15,16
Channel Metric Collection/Source
Primary risks /
basic market
statistics
Market capitalisation (size and rate of
growth), price levels and volatility of
major crypto-assets
Developments in non-FSB jurisdictions
(qualitative)
BIS, based on public sources
IMF
Confidence
effects
Qualitative market intelligence gathering Periodically by the FSB, from
members and through regular calls
and meetings
Wealth effects /
market
capitalisation
Market capitalisation metrics
i. Size and rate of growth
ii. ICO issuance
iii. Inflows/outflows from fiat
currencies
BIS, based on public sources
Price metrics
i. Price levels
ii. Price volatility
iii. Rate of growth
BIS, based on public sources
Institutional
exposures
Derivatives metrics
i. Trading volumes
ii. Price levels and open interest
iii. Number and type of clearing
members
iv. Margining
FSB Secretariat and member
authorities, based on publicly
available CCP disclosures and/or
publicly available market data
Market capitalisation metrics As above
Banks’ exposures to crypto-assets BCBS
Payments and
settlement
Wider use in payments and settlements CPMI, based on member and
collective intelligence gathering
Comparators Comparisons of volatility and
correlations between major crypto-
currencies with other asset classes such
as gold, currencies, equities
BIS, based on public sources
15
As technology evolves and market conditions develop, other metrics may be appropriate for collection if the FSB deems it
necessary.
16
As outlined on p. 3, any analysis of the metrics as well as the interpretation of the results, should appropriately take into
account the information outlined in the disclaimer on data quality and reliability.