Chicago Fed discusses high speed trading. The March Letter of the Federal Reserve Bank of Chicago discusses the policy implications of high-speed trading. (3/2014) Letter.
Updates on tri-party repo reforms. The Federal Reserve Bank of New York discussed reforms to the tri-party repo infrastructure. While the tri-party repo clearing banks have substantially reduced the amount of intraday credit needed for daily settlement and redesigned the process for settling maturing trades in a more liquidity-efficient manner, the risk of destabilizing fire sales has not been addressed by industry participants. (2/13/2014) New York Fed statement.
OCC guidance on proposed heightened standards for large banks. A bulletin has been published by the OCC on its proposed rule that would establish minimum standards for the design and implementation of a risk governance framework for large insured national banks, insured federal savings associations, and insured federal branches of foreign banks with average total consolidated assets of $50 billion or more. (2/5/2014)