The New EU Prudential Regime for Investment Firms and What It Means for Firms

By | February 24, 2020

Courtesy of Mete Feridun  Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official views and opinions of PwC.  The Official Journal of the European Union published the prudential framework for investment firms (Investment Firms Review – IFR) on 5 December 2019. Applying to all MiFID… Read More »

The Virtual Commodity Association and the Uphill Battle for Cryptocurrency Self-Regulation

By | February 20, 2020

Courtesy of Katarina Weessies In March of 2018, Cameron and Tyler Winklevoss proposed the Virtual Commodity Association (VCA), a self-regulatory organization, or SRO, meant to make the cryptocurrency industry more “safe and secure.” An SRO is “a nongovernmental organization that is statutorily empowered to regulate its members by adopting and enforcing rules of conduct.” The… Read More »

How Cryptocurrencies Should Be Regulated as Non-Sovereign Fiat Currencies

By | February 18, 2020

Courtesy of J.S. Nelson As Facebook’s Libra, despite hiccups, may have 2.4 billion users a month transacting for goods and services by later this year, the question of how cryptocurrencies should be regulated is taking on pressing importance. My forthcoming article, “Cryptocommunity Currencies,” argues—first, that cryptocurrencies should be regulated; second, that they should be regulated… Read More »

Negative Interest Rates: Sharp Increase in Risk-Taking Behavior

By | February 12, 2020

Courtesy of Maren Baars, Henning Cordes, and Hannes Mohrschladt As a consequence of the global financial crisis and the European sovereign debt crisis, risk-free nominal interest rates have plummeted – in some countries, they even turned negative. These interest rate decreases lead to a systematically higher risk appetite by institutional investors, such as banks and… Read More »

Central Banks in the Hot Seat: How Should Central Banks Join the Fight Against Climate Change?

By | February 10, 2020

Courtesy of Juliana B. Bolzani Although some skepticism remains about the causes and effects of climate change, scientists have concluded that human activity is significantly accelerating global warming.  In response to this emergency scenario, important voices in the private and public sectors have stressed the need for action, standing in contrast with the US government’s… Read More »

How Much Justice Can You Afford?

By | February 7, 2020

Courtesy of Elayne E. Greenberg and Noam Ebner It is one of the oldest lawyer jokes in the book, and its punchline is about to change. Remember the New Yorker cartoon, in which a lawyer and their client sit at a table, and the lawyer assesses the client’s legal problem? “You have a pretty good… Read More »

Ripple Effects: How Ongoing Litigation Could Signal the Beginning of the End For the Payments Platform

By | February 5, 2020

Courtesy of Lindsay Martin Founded in 2012, Ripple sought to revolutionize global payments using blockchain technology and digital assets. Members of the Ripple network can quickly transfer funds to other members of the network in a secure, real-time settlement process. Ripple’s native currency is XRP, and members of the Ripple network can transfer XRP to… Read More »

What is the Value of an Innovation? Theory and Evidence on the Stock Market’s Reaction to Innovation Announcements

By | February 4, 2020

Courtesy of Thomas Chemmanur, Dongmei Li, Kevin Tseng, and Yu Wang Recently, there has been considerable interest among economists in stock market-based measures of the value of corporate innovations. For example, in a recent paper, Kogan, Papanikolaou, Seru, and Stoffman (2017) develop a new measure of the economic value of a corporate innovation by making… Read More »

Addressing Systemic Risks from the Procyclicality of Collateral Requirements in Derivatives Markets and SFTs

By | January 31, 2020

Courtesy of Mete Feridun  Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official views and opinions of PwC.  Post-crisis regulatory reforms have resulted in the majority of derivatives being cleared through central counterparties (CCPs) or subject to bilateral collateral requirements, such as the… Read More »