Yves Mersch: Monetary policy and time inconsistency in an uncertain environment Speech by Mr Yves Mersch, Governor of the Central Bank of Luxembourg, at the NOBELUX Seminar, Luxembourg, 11 September 2006.
To limit such regulatory arbitrage, the Federal Reserve will be developing regulations that would establish minimum margins for securities financing transactions on a marketwide basis. The margins would apply to all market participants, thereby mitigating the risks associated with regulation along institutional lines.