Abstract
This chapter focuses on the systemic risks that could flow from disturbances in securities markets (i.e., bond, equity, and derivative markets but not foreign exchange or credit markets) to the international financial system. It has two parts. The first part addresses the questions: What do we mean by systemic risks, how could these turn into a systemic crisis, and have such risks accumulated to an extent that raises concern and requires corrective action? The second part looks at possible measures to strengthen the capacity to forestall, manage, or absorb shocks to the system, grouping them under the four headings of market mechanisms, settlement systems, supervisory coverage, and capital requirements.
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References
Corrigan, Gerald E. Federal Reserve Bank of New York, Speech to the New York State Bankers Association, January 1990.
Duffee, Gregory, Kupiec, Paul, and White, Patricia. A Primer on Program Trading and Stock Price Volatility: A Survey of the Issues and the Evidence, Finance and Economic Discussion Series No. 109, Federal Reserve Board, Washington, D.C., January 1990.
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© 1992 Springer Science+Business Media New York
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Hewitt, M.E. (1992). Systemic Risk in International Securities Markets. In: Edwards, F.R., Patrick, H.T. (eds) Regulating International Financial Markets: Issues and Policies. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-3880-2_19
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DOI: https://doi.org/10.1007/978-94-011-3880-2_19
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-5727-1
Online ISBN: 978-94-011-3880-2
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