The FTSE All-Share index fell over 10% on 12 March, the largest one-day fall since 1987. Other markets also saw shocks beyond or close to the largest in history. 2. FSB (2017) Report on effectiveness of derivatives reforms  . 3. By March 2020, 60% of credit default swaps were cleared, and 80% of interest rate contracts, up from about 10% and 40% respectively in 2008. 4. Review of margining practices (bis.org) 5. From Lender of Last Resort to Market Maker of Last Resort via the dash for cash: why central banks need new tools for dealing with market dysfunction (bankofengland.co.uk) 6. VM calls were six times larger compared to normal levels on 1 March 2022 £ compared to a five-fold increase on 18 March 2020 £ VM calls at the most affected clearing services were as high as 35 times normal levels (LME Base). 7. Total IM requirements of UK CCPs peaked at around 30% higher relative to their pre-stress levels in Q1 2020. The peak aggregate increase in Q1 2022 was 13% (relative to 1 February 2022). 8. Review of margining practices (bis.org) 9. Joint statement from UK Financial Regulation Authorities on London Metal Exchange and LME Clear | Bank of England 10. This is different to climate change, where it is possible to model how the future will be different to the past and this is informing the pricing of risk today – but there is no obvious way to identify future market shocks and volatility robustly. 11.
Christian Noyer: The outlook for the economies of the euro area and France Speech by Mr Christian Noyer, Governor of the Bank of France and Chairman of the Board of Directors of the Bank for International Settlements, at the Paris Europlace International Financial Forum, New York, 14 April 2014. *  *  *  Ladies and gentlemen, I am very pleased to be here with you today for this Paris Europlace International Financial Forum. I would like to extend my sincere thanks to the whole Paris Europlace team for their great work on this specific event and, more generally, for their commitment to the French financial sector. I would like to provide you with a quick overview of the outlook for the economies of the euro area and for France. 1. The economic and financial situation in the euro area  I shall start by updating you on the current situation in the euro area. As you know, the second quarter of 2013 marked a turning point in that it put an end to six consecutive quarters of recession. The euro area economy finally saw a return to positive growth, with a 0.3% expansion, and this was confirmed in the third quarter with 0.1% growth, and again in the fourth quarter with 0.3% growth. The recovery in 2013 was modest and unequal across countries. However, it still reflects a sharp improvement in the overall trend, which is continuing and gradually getting stronger.