Gandré, Pauline; Mariathasan, Mike; Merrouche, Ouarda; … - 2020
We investigate regulatory arbitrage during the G20's global derivatives market reform. Using hand-collected data on … staggered reform progress, we find that banks shift their trading towards less regulated jurisdictions. The result is driven by … document that subsidiaries in jurisdictions with more reform progress shift to riskier portfolios. Alleviating endogeneity …