Market Fragility and Interconnectedness in the Asset Management Industry
SEC Keynote Address: Buy-Side Risk USA Conference 2017
8 Pages Posted: 18 Aug 2018
Date Written: June 20, 2017
The relationship between asset management activities and financial stability risks has been a frequent topic of discussion among financial market participants and regulators in recent years. This discussion has arisen in light of the significant growth in the asset management industry and the increased focus on financial stability risks in the aftermath of the financial crisis. My remarks are intended to highlight the underlying economics of these issues to help provide a better understanding of their nature and significance. They are informed by a continuously emerging body of academic research, some of which is being performed by staff at the SEC, and all of which demonstrates the inherent complexities in thinking about potential contributions of asset management practices to market fragility concerns.
Keywords: Financial Stability, Interconnectedness, Asset Management, SEC, FSB, Liquidity, Financial Regulation, Herding, Shadow Banking
JEL Classification: G10, G15, G23, G28
Suggested Citation: Suggested Citation