/or information collected by market participants for the purpose of their own risk management. The framework involves four pillars: (i … supervisory arrangements, (iii) assessing the risk mitigation infrastructure, and (iv) assessing the degree of market transparency …

United Kingdom - are more promising while still entailing significant implementation challenges. A risk factor common to all … of the financial system. Since this could lead to accumulation of systemic risk if left unchecked, it appears unlikely …

The availability of financial instruments related to indices that track global financial conditions and risk appetite … instruments can explain much of the in-sample variation in borrowing spreads, this fails to materialize in hedging strategies that … during times of systemic crises. Moreover, high risk countries seem to gain more, as their underlying weaknesses makes them …

passive versus active hedging. In addition, it outlines a set of widely accepted best practices in managing currency risk and …Measuring and managing exchange rate risk exposure is important for reducing a firm's vulnerabilities from major … traditional types of exchange rate risk faced by firms, namely transaction, translation and economic risks, presents the VaR …

The increasing ability to trade credit risk in financial markets has facilitated its dispersion across the financial … and other sectors. However, specific risks attached to credit risk transfer (CRT) instruments in a market with still …

This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for … commodity-exporting countries. The introduction of hedging instruments such as futures and options enhances domestic welfare …

, this paper argues that macro-prudential regulation is necessary to address the systemic risk inherent to ratings. The paper … and increased illiquidity. The paper suggests the use of "ratings maps" and stress-tests to assess the systemic risk of … ratings, and increased capital or liquidity buffers to manage such risk. …