Increasingly, these supporting firms are providing their services from overseas, taking advantage both of lower labor costs there and of the revolution in communications. At the same time, much of the rapid technological innovation in this period has occurred outside the large corporate sector, and the success of that innovation has boosted the pace at which new ventures are being created.
For example, there are likely some financial market stresses, such as rapid and significant increases in market volatility, that would be expected to have broad effects across financial markets and participants. Coordinated stress tests could also help us better understand the macroprudential risks around liquidity that I discussed earlier.