The Systemic Rsk Centre at LSE - Value to intellectual partners

THE SYSTEMIC RISK CENTRE AT LSE

Value to intellectual partners

A store of knowledge and a source of paradigm shifting ideas backed by rigorous research A research centre of outstanding and proven productivity: 358 publications 31 opinion pieces 51 seminars 60 conferences, workshops and public lectures A constellation of affiliated researchers with a variety of skills and interests held together by the “intellectual gravity” of the centre directors, the centre research staff and the LSE itself A vibrant team set in the heart of one of the world’s great teaching universities A gateway to some of the world’s most talented students A network that impartially connects a multitude of people, companies and institutions through independent research A forum for practitioners and academics to meet and exchange ideas A respected, impartial, informed and intelligent commentator A prominent research voice informing policy development and direction

www.systemicrisk.ac.uk

THE SYSTEMIC RISK CENTRE AT LSE

SRC Intellectual partnership brings opportunities to:

Discuss past, current and future research Attend LSE / SRC talks, seminars and breakfast meetings with thought leaders and senior policy and decision makers Apply rigorous research to support business risk management

Fintech

Central banks Regulators and policymakers

Financial infrastructure

Risk analysis companies

Asset managers

Data and technology vendors

Hedge funds

Insurance companies

Academic institutions Financial journalists

Banks

Research impact Learning from History: Volatility and Financial Crises adownload Was Minsky right? Does low risk cause future crises?

The Future of Computer Trading in Financial Markets. An International Perspective. Final Project Report (2010-2012) adownload

This paper finds strong support for the idea that low

Jean-Pierre Zigrand with Charles Goodhart,

volatility sharply increases the chance of crises 5 to

Oliver Linton, Dave Cliff, Philip Bond, Kevin Houstoun,

10 years in the future.

and Andy Haldane, chaired by Dame Clara Furse

Jon Danielsson, Marcela Valenzuela and Ilknur Zer.

Why risk is so hard to measure adownload Jon Danielsson and Chen Zhou.

and Sir John Beddington.

The first comprehensive and in-depth study of computer-based trading with 40 academic papers

We rely on risk measurements / estimates for all sorts

underpinning the report that had a significant impact on

of applications, from internal risk management to

regulatory thinking and on the law.

macro prudential regulations. But do we measure risk estimated much less accurately than commonly thought,

Are asset managers systemically important? adownload

and that risk controls can be easy to bypass.

Jon Danielsson and Jean-Pierre Zigrand.

accurately? This paper finds that risk is measured /

Model Risk of Risk Models adownload Jon Danielsson, Kevin James, Marcela Valenzuela and Ilknur Zer.

This paper argues that the role of asset managers as possible counter-cyclical agents is a valuable and crucial one, while identifying a simple test to check whether asset managers or asset-owners would be the right point

Model risk refers to the risk of bad outcomes when using

of regulatory entry in case of a potential intervention when

models for decisions. This paper finds substantial model

faced with destabilising dynamics.

risk associated with macro prudential policies, financial regulations and bank capital calculations, which creates significant risk of unexpected adverse outcomes.

Marking to Market versus Taking to Market adownload

What do Network Theory and Endogenous Risk Theory have to say about the effects of CCPs on Systemic Stability? adownload Jean-Pierre Zigrand, Banque de France Financial

Guillaume Plantin and Jean Tirole.

Stability Review 14, 2010.

This paper identifies the conditions under which cost

By relying on endogenous risk and network theory,

accounting is preferable to market-value accounting

Dr Zigrand argues that CCPs may well create both more

based on the quality of data, and how this feeds into

and novel pro-cyclical collateral sales compared to

better market liquidity.

OTC, and that multiple fragmented CCPs make this more

Financial Transaction Taxes and the Informational Efficiency of Asset Markets: A Structural Estimation adownload

pronounced still.

Andreas Uthemann with Marco Cipriani and

Special Issue on Hedge Funds 10, 2007.

Antonio Guarino.

Regulating Hedge Funds adownload Jean-Pierre Zigrand and Jon Danielsson, Banque de France Financial Stability Review – This is perhaps the first paper looking at the economics

Financial transaction taxes will likely adversely

of hedge fund regulation, with a caution that some of the

affect the efficiency of financial markets and the

contemplated regulations remove the social benefits of

provision of liquidity.

hedge funds as a counter-cyclical force.

THE SYSTEMIC RISK CENTRE AT LSE Future research Finance: Culture Politics Networks Policy

Risk: Systemic Endogenous Amplification Policy response

Networks between financial institutions

Regulation and impact on the regulated Central banks IMF Banks Insurers Asset Managers Hedge Funds CCPs

Capital Markets Union (CMU) Financial Transaction Tax Practitioner risk pricing

www.systemicrisk.ac.uk

Blockchain Distributed ledger Fintech

Amplification: Counterparty Liquidity Credit Network Firesale

Published by Systemic Risk Centre The London School of Economics and Political Science Houghton Street London WC2A 2AE Š Systemic Risk Centre 2017