Thursday, August 21, 2014
In a recent commentary in the Independent, "Bank of England’s Governor, Mark Carney (in his capacity as chairman of the Financial Stability Board), the Senior Supervisor’s Group reported: 'Firms’ progress toward consistent, timely and accurate reporting of top counterparty exposures fails to meet supervisory expectations as well as industry self-identified best practices.'" The British are still worried about counterparty risk. The comment points to Japan stating, "For example, the Bank of Japan has manoeuvred its bond market to a point where bond futures no longer trade. Its interventions have distorted free-market pricing mechanisms to the point where price discovery is non-existent and risk is virtually impossible to quantify."