Having seen the legendary Ed 9 / 14  BIS central bankers' speeches  Kuepper and the Aints again last Friday, it’s worth remembering to “Know Your Product”, otherwise it will be “No, Your Product”. What is particularly noteworthy about this episode is how much the rise in volatility, and the large movements in prices, was confined to equity markets.
While volatility rose in other asset classes, it did not increase to particularly noteworthy levels. For example, there was relatively little spillover to emerging markets. This is in stark contrast to similar episodes in the past. The fact that these products were particularly associated with volatility in US equity prices appears to have contributed to the limited contagion.