FMI research initiative at OTC Deriv. & Central Clearing Symposium, Chicago

INTRODUCTION
As part of the Financial Market Infrastructure (FMI) research initiative, YSI members with excellent academic background and proven research interest in FMI are attending the OTC Deriv. & Central Clearing Symposium by the Federal Reserve Bank Chicago in Chicago.

FMI RESEARCH INITIATIVE STATUS
FMI research initiative seeks to support research in FMI to the benefit of policy makers, regulators and related institutions. In order to define the FMI research initiative, Gerhardt Kalterherberg and Jay Pocklington have aligned the following questions, which can be reviewed at any point:

1) Why is the current FMI status interesting for academic researchers?
2) What is the vision for supporting academic research in FMI?
3) Why is it necessary to support academic research in FMI?
4) What is the mission statement for this initiative?
5) What is the impact for academic research on FMI?
6) What are currently the most pressing questions for FMI / CCP?

Operative focus of the FMI research initiative is currently a discussion with the Federal Reserve Bank Chicago (FRBC) regarding a strategic partnership. FRBC is reknown for its high competence in et al. central counterparty (CCP) clearing. The initiative is open for further partnerships.

As part of the FMI research initiative's initial steps of conducting relevant research, Prof. Perry Mehrling et al., INET met with Robert Steigerwald, Senior Policy Advisor, Financial Markets, FRBC to discuss possible research questions. The meeting underlined the possibility and interest in co-writing a mutual paper by all participants.

A first group of junior INET YSI thinkers joined the Central Counterparty Risk Management Central Conference Wednesday, 27. Feb. 2019 by Deutsche Bundesbank, European Central Bank and Federal Reserve Bank of Chicago in Frankfurt. Interest by participants fueled their research interest in the field. A list of participants has been made public.

CONFERENCE INFORMATION – PROVIDED BY FRBC
The symposium is a one-day, invitation-only event organized by the Chicago Fed in conjunction with Professor Darrell Duffie of Stanford University.

The symposium, considered one of the most important forums on central clearing, is conducted under the Chatham House rule and will be closed to the press.

The keynote speaker is Robert Kapito, President of BlackRock, Inc.

Experts from the financial industry and regulators will address developments and emerging issues for central clearing in four key areas:

•    The transition to alternative reference rates from the London Interbank Offered Rate (LIBOR)

•    The implications of Brexit, including CCP migration issues and legal jeopardy for “orphaned” swaps  

•    Cross-border regulatory cooperation and recognition   

•    CCP default management and failure resolution 

This conference has been very well attended in the past and space is limited. The event is free of cost to attendees, and will begin promptly at 8:30 a.m. and conclude at 4:00 p.m. followed by a reception.