The Flash Crash, Two Years On
On May 6, 2010, several U.S.-based equity products underwent an extraordinary price decline and recovery, all within less than half an hour.
Euro Area Spending Imbalances and the Sovereign Debt Crisis
Euro area periphery countries were borrowing heavily from abroad in the run-up to the sovereign debt crisis.
The Impact of Trade Reporting on the Interest Rate Derivatives Market
In recent years, regulators in the United States and abroad have begun to strengthen regulations governing over-the-counter (OTC) derivatives trading, driven by concerns over the decentralized and opaque nature of current trading practices.
Innovations in Treasury Debt Instruments
On January 31, 2012, the Treasury Borrowing Advisory Committee advised the Secretary of the Treasury that it unanimously supported the issuance of floating-rate notes by the U.S. Treasury.
Failure Is No Longer a (Free) Option for Agency Debt and Mortgage‑Backed Securities
A recommended charge on settlement fails for agency debt and agency mortgage-backed securities (MBS) took effect on February 1, 2012.
Is Risk Rising in the Tri‑Party Repo Market?
At the New York Fed, we follow the repo market closely and, with some of my colleagues, I’ve tried to keep readers of this blog informed about how the market works, how it’s being reformed, and what risks remain.
How the High Level of Reserves Benefits the Payment System
Since October 2008, the Federal Reserve has increased the size of its balance sheet by lending to financial intermediaries and purchasing assets on a large scale.
Do Payday Lenders Target Minorities?
Payday lenders make small, short-term loans to millions of households across the country.
When Do Trading Frictions Increase Liquidity?
Economists tend to assume that frictions that limit trading in financial markets reduce liquidity and lower investor welfare.