Compounded with the effects of the war in Ukraine, WFE saw more financial institutions running into difficulty with the failure of some banks in Europe and in the US
The meeting, now in its sixty-second year and by invitation only, gathers the leaders of exchanges and central counterparties from around the world to engage and speak to stakeholders
The WFE says its consideration of use cases promises a way forward, because it looks at data ‘in the wild’, as it relates to actual practice in equity trading, rather than according to theoretical dogma
Derivatives trading volumes were more than three times larger than the year before (11.4 per cent) and greater than the surge during the financial crisis of 2007/2008
Key findings from the report note that circuit breakers are more prevalent in cash than in derivatives markets, while a large proportion of respondents confirmed circuit breakers were triggered during March 2020
WFE says the markets remained open and functioning, despite the exceptional circumstances and even during the worst days of the crisis, and after the peak in uncertainty observed in March, markets quickly recovered
“We strongly support the commission’s ambitions for improving operational resilience across all sectors of the financial services industry," says WFE's CEO Nandini Sukumar, CEO of WFE
“Procyclicality is a function of the ecosystem and needs to be examined holistically. CCPs exist to manage and mitigate risk and they understand their responsibility to the system. We call on other stakeholders to do the same,” says WFE CEO
The World Federation of Exchanges has called for a “careful and considered” approach in changing resolution arrangements at central counterparties in case of damaged stability and increased systemic risk