Challenges to a Policy Treatment of Speculative Trading Motivated by Differences in Beliefs

Sunday, February 2, 2014

Working Group on Economic Policy: WP14106

Abstract:

This paper argues that failure resolution cannot yet be safely applied to certain firms that operate  key financial market infrastructures used for clearing over-the-counter derivatives or tri-party repurchase agreements.
 
Download the pdf

Challenges to a Policy Treatment of Speculative Trading Motivated by Differences in Beliefs