In recent years, the question of how to prevent another crippling re-cession has become a prominent one. The answer provided by the Dodd-Frank Act is stress testing, which examines through economic models how banks would react to a bad turn of economic events, such as negative interest rates....

Following the recent global financial crisis, regulators have recognized the importance of stress testing, in part due to the impact of model risk, and have implemented supervisory requirements in both the revised Basel framework and the Comprehensive Capital Analysis and Review (CCAR) program....

Purpose – Using data for actual insider trading cases prosecuted by the Securities and Exchange Commission, the paper aims to investigate whether insiders trade strategically to avoid detection. Design/methodology/approach – The paper analyzes actual insider trades prior to price sensitive...

The solution to the sovereign debt crisis and the restoration of confidence in the European project are critical for the long term stability and economic growth of the region, and for the stability of worldwide financial market. Defining debt sustainability is not an easy task. In the past,...

Current trading is characterized by various market structures. This chapter examines market structures predominant in equities and fixed-income markets and compares and contrasts them. It also reviews the academic literature about the implications of market structure design. Market structure...

It is found that insiders are more likely to trade on high volume days, which indicates an effort to hide their trades. Further, insider trading raises the number of days with abnormally high trading volume only slightly, again indicating that insiders are avoiding attracting attention. No...

This is a forthcoming study on how euro-zone announcements and bailouts affect fixed income markets. In particular, this paper examines volumes, levels, and yields of euro-zone bonds around the time when macroeconomic announcements are made

This Columbia Law School Blue Sky Blog post on insider trading analyzes shares from NASDAQ, AMEX, the New York Stock Exchange, and over the counter (OTC) markets, which allows for an examination of insider behavior within different market structures. We find that trades are different from...

In 2007, the European Commission instituted the Markets in Financial Instruments Directive (MiFID), a public policy measure intended to establish a pan-European market for shares. Introducing a ‘passport' function for clearing and settlement plus a best execution mandate, MiFID proved to be a...