THE SYSTEMIC RISK CENTRE AT LSE
Value to intellectual partners
A store of knowledge and a source of paradigm shifting ideas backed by rigorous research A research centre of outstanding and proven productivity: 358 publications 31 opinion pieces 51 seminars 60 conferences, workshops and public lectures A constellation of affiliated researchers with a variety of skills and interests held together by the “intellectual gravity” of the centre directors, the centre research staff and the LSE itself A vibrant team set in the heart of one of the world’s great teaching universities A gateway to some of the world’s most talented students A network that impartially connects a multitude of people, companies and institutions through independent research A forum for practitioners and academics to meet and exchange ideas A respected, impartial, informed and intelligent commentator A prominent research voice informing policy development and direction
www.systemicrisk.ac.uk
THE SYSTEMIC RISK CENTRE AT LSE
SRC Intellectual partnership brings opportunities to:
Discuss past, current and future research Attend LSE / SRC talks, seminars and breakfast meetings with thought leaders and senior policy and decision makers Apply rigorous research to support business risk management
Fintech
Central banks Regulators and policymakers
Financial infrastructure
Risk analysis companies
Asset managers
Data and technology vendors
Hedge funds
Insurance companies
Academic institutions Financial journalists
Banks
Research impact Learning from History: Volatility and Financial Crises adownload Was Minsky right? Does low risk cause future crises?
The Future of Computer Trading in Financial Markets. An International Perspective. Final Project Report (2010-2012) adownload
This paper finds strong support for the idea that low
Jean-Pierre Zigrand with Charles Goodhart,
volatility sharply increases the chance of crises 5 to
Oliver Linton, Dave Cliff, Philip Bond, Kevin Houstoun,
10 years in the future.
and Andy Haldane, chaired by Dame Clara Furse
Jon Danielsson, Marcela Valenzuela and Ilknur Zer.
Why risk is so hard to measure adownload Jon Danielsson and Chen Zhou.
and Sir John Beddington. The first comprehensive and in-depth study of computer-based trading with 40 academic papers
We rely on risk measurements / estimates for all sorts
underpinning the report that had a significant impact on
of applications, from internal risk management to
regulatory thinking and on the law.
macro prudential regulations. But do we measure risk estimated much less accurately than commonly thought,
Are asset managers systemically important? adownload
and that risk controls can be easy to bypass.
Jon Danielsson and Jean-Pierre Zigrand.
accurately? This paper finds that risk is measured /
Model Risk of Risk Models adownload Jon Danielsson, Kevin James, Marcela Valenzuela and Ilknur Zer.
This paper argues that the role of asset managers as possible counter-cyclical agents is a valuable and crucial one, while identifying a simple test to check whether asset managers or asset-owners would be the right point
Model risk refers to the risk of bad outcomes when using
of regulatory entry in case of a potential intervention when
models for decisions. This paper finds substantial model
faced with destabilising dynamics.
risk associated with macro prudential policies, financial regulations and bank capital calculations, which creates significant risk of unexpected adverse outcomes.
Marking to Market versus Taking to Market adownload
What do Network Theory and Endogenous Risk Theory have to say about the effects of CCPs on Systemic Stability? adownload Jean-Pierre Zigrand, Banque de France Financial
Guillaume Plantin and Jean Tirole.
Stability Review 14, 2010.
This paper identifies the conditions under which cost
By relying on endogenous risk and network theory,
accounting is preferable to market-value accounting
Dr Zigrand argues that CCPs may well create both more
based on the quality of data, and how this feeds into
and novel pro-cyclical collateral sales compared to
better market liquidity.
OTC, and that multiple fragmented CCPs make this more
Financial Transaction Taxes and the Informational Efficiency of Asset Markets: A Structural Estimation adownload
pronounced still.
Andreas Uthemann with Marco Cipriani and
Special Issue on Hedge Funds 10, 2007.
Antonio Guarino.
Regulating Hedge Funds adownload Jean-Pierre Zigrand and Jon Danielsson, Banque de France Financial Stability Review – This is perhaps the first paper looking at the economics
Financial transaction taxes will likely adversely
of hedge fund regulation, with a caution that some of the
affect the efficiency of financial markets and the
contemplated regulations remove the social benefits of
provision of liquidity.
hedge funds as a counter-cyclical force.
THE SYSTEMIC RISK CENTRE AT LSE Future research Finance: Culture Politics Networks Policy
Risk: Systemic Endogenous Amplification Policy response
Networks between financial institutions
Regulation and impact on the regulated Central banks IMF Banks Insurers Asset Managers Hedge Funds CCPs
Capital Markets Union (CMU) Financial Transaction Tax Practitioner risk pricing
www.systemicrisk.ac.uk
Blockchain Distributed ledger Fintech
Amplification: Counterparty Liquidity Credit Network Firesale
Published by Systemic Risk Centre The London School of Economics and Political Science Houghton Street London WC2A 2AE Š Systemic Risk Centre 2017