Clearing: Perspectives on Industry Developments and Learnings from the Covid Crisis

Decades of events, decisions, and occasional defaults have shaped how global financial markets operate today. This history is rich, and often best told by those who have experienced it firsthand.

For this episode, LaSalle Street welcomes Robert Steigerwald, senior policy advisor in the Financial Markets Group of the Federal Reserve Bank of Chicago, to discuss more than five decades of market evolution—from the bankruptcy of Herstatt Bank in the 1970s to the emergence of digital money. Moderating the conversation is Nahiomy Alvarez, senior financial markets analyst at the Chicago Fed.

Steigerwald has long contributed to the Chicago Fed’s research on clearing and settlement, payments, and other policy issues impacting financial market infrastructure. He is currently a member of the U.S. Commodity Futures Trading Commission’s Market Risk Advisory Committee. Before joining the Chicago Fed in 2000, Steigerwald served as legal counsel for a clearinghouse for foreign currency transactions and an attorney with a law firm representing exchanges, clearinghouses, and related trade associations.

Global financial markets are constantly factoring in risks, such as cyber threats and the current pandemic. But is there something special about climate change that market participants are only starting to understand?

This episode of LaSalle Street explores the challenge of climate change risk, including whether the emerging risk is being properly priced into financial markets and if risk-management strategies need to change to account for the complexity and projected duration of climate change. The discussion delves into key issues such as whether there should be a price on carbon and if corporate disclosures can play an essential role in managing climate risk.

Robert Engle and Dick Berner, co-directors of the Volatility and Risk Institute at New York University (NYU) Stern School of Business, join Alessandro Cocco, vice president of the Financial Markets Group at the Chicago Fed. Engle is a professor emeritus of finance at NYU Stern and the recipient of the 2003 Nobel Prize in Economics. Berner is a clinical professor of management practice in the Department of Finance at NYU Stern. He served as the first director of the Office of Financial Research and chief or senior economist at Morgan Stanley, Mellon Bank, and the Board of Governors of the Federal Reserve System.

LaSalle Street hosts a discussion on the potential effects of climate change on housing market values and whether such risks could impact systemic stability.

Financial market participants are increasingly aware of climate risk, but a comprehensive risk-management approach to climate change risk has not been developed yet. In this episode, we discuss the potential effects of physical and transition risk on the housing market—and how that risk flows into financial markets through borrowers and lenders, investors, and insurers.

Joining host Alessandro Cocco, vice president of the Financial Markets Group at the Chicago Fed, are Eric Hogue, risk specialist at the Federal Reserve Bank of Kansas City, Jesse M. Keenan, associate professor of real estate at Tulane University’s School of Architecture, and David Rodziewicz, senior economics specialist at the Federal Reserve Bank of Kansas City.

For its latest episode, LaSalle Street welcomes cyber risk executives representing financial firms to discuss cyber and technology risk management.

Ketan B. Patel, policy advisor and head of financial markets risk analysis in the Chicago Fed’s Financial Markets Group, hosts this episode. Alessandro Cocco, vice president of the Financial Markets Group at the Chicago Fed, provides an introduction.

Joining the podcast are David Currie, chief information security officer at Nubank, and Alonzo Ellis, chief information security officer at Vanguard.  

The guests provide background information on cyber risk management and delve into a range of related topics, including recent cyber incidents, cyber risk best practices, and vendor risk-management techniques. They also explore the lessons learned from the Covid-19 pandemic.

LaSalle Street hosts a discussion with executives representing exchanges, swap dealers, clearinghouses and asset managers on the impact of the Covid crisis and what to watch for as the pandemic eases.

Joining the podcast for this episode are Teo Floor, Chief Executive Officer of CCP12; Ulrich Karl, Head of Clearing Services at the International Swap Dealers Association; Pedro Gurrola Perez, Head of Research at the World Federation of Exchanges; and Jason Silverstein, Associate General Counsel at the Securities Industry and Financial Markets Association.

In its latest episode, LaSalle Street, a podcast from the Financial Markets Group at the Federal Reserve Bank of Chicago, hosts a conversation on identity, gender and careers in finance with four women shaping global derivatives markets.

Joining LaSalle Street for this episode are Laura Astrada, Managing Director at DTCC; Caroline Pham, Managing Director and Head of Capital Markets Regulatory Strategy at Citi; Maggie Sklar, Director of International Engagement, the Federal Reserve Bank of Chicago; Petal Walker, Special Counsel, WilmerHale.

Moderating the discussion is Nahiomy Alvarez, Senior Financial Markets Analyst at the Chicago Fed. Anna Paulson, Executive Vice President and Director of Research at Chicago Fed, provides an introduction. The episode was recorded during Women’s History Month, which was created to celebrate the many contributions and achievements of women.

In this episode, we explore how climate change risk is impacting global financial markets now and what to expect in the future.

Market experts discuss developments in technology, investing, and regulations, as well as how financial markets and the public sector can help advance the management of climate change risk.

Joining LaSalle Street is Anita Herrera (Nodal Exchange, LLC), Steven Kennedy (International Swaps and Derivatives), Christopher Palazzolo (AQR Capital), and Steven Rothstein (Ceres, Inc.).

 The views expressed on LaSalle Street are the speakers’ own and do not necessarily reflect the views of the Federal Reserve Bank of Chicago or the Federal Reserve System.

In this episode, Darrell Duffie (Stanford) discusses stresses in the Treasury market with Lou Crandall (ICAP), Ken Garbade (published author), and Barbara Novick (Blackrock). This market has a huge impact across the financial system—from determining the borrowing costs for governments to serving as a key benchmark within the financial system to helping to keep credit flowing to people who need it.

 The views expressed on LaSalle Street are the speakers’ own and do not necessarily reflect the views of the Federal Reserve Bank of Chicago or the Federal Reserve System.

LaSalle Street welcomes chief risk officers from Options Clearing Corporation and Nasdaq Inc. to discuss what the Covid-19 is teaching us about risk management and global financial markets.

The episode delves into a range of market issues, from initial margining and operational risk management at central clearing counterparties during the pandemic to climate change and the biggest risks on the horizon for the rest of 2020. The discussion features Roland Chai, Chief Risk Officer of Nasdaq Inc., and John J. Fennell, Chief Risk Officer of the Options Clearing Corporation, and is hosted by Ketan Patel, Policy Advisor and Head of Financial Markets Risk Analysis in the Financial Markets Group at the Federal Reserve Bank of Chicago.

 The views expressed on LaSalle Street are the speakers’ own and do not necessarily reflect the views of the Federal Reserve Bank of Chicago or the Federal Reserve System.

The Honorable J. Christopher (Chris) Giancarlo was on the frontlines of the biggest issues shaping global financial markets as the 13th chairman of the U.S. Commodity Futures Trading Commission (CFTC). Known by some as "CryptoDad," Giancarlo visits LaSalle Street to discuss his reflections a year after leaving the CFTC, key issues he faced during his tenure, and emerging issues shaping the markets today. The conversation includes discussion of clearinghouse risk and the work of the Financial Stability Board, the risks embedded in reference rates, and why regulators should be investing time in the future of digital currency. 

 This episode of LaSalle Street is hosted by Maggie Sklar, senior policy advisor and director of international engagement in the Financial Markets Group at the Federal Reserve Bank of Chicago. Prior to joining the Chicago Fed, Sklar held various senior leadership positions within the CFTC, including senior counsel to Chairman Giancarlo, associate director of the office of international affairs and senior counsel to Commissioner Mark P. Wetjen.

 The views expressed on LaSalle Street are the speakers’ own and do not necessarily reflect the views of the Federal Reserve Bank of Chicago or the Federal Reserve System.