Conduct Risk and Financial Stability [25]

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Bullet points include: "Systemic" mentioned five times in Final Report: Page 26: leverage ratio being introduced for G-SIBs. Page 42: systemic importance of Libor in financial markets. Page 62: recommendation not to extend Banking Reform Act offence of recklessly contributing to a bank failure to other institutions simply because they are active in the FICC markets, where their failure would not pose a system and prudential threat to public funds and the economy. Page 81: effective management of conduct risks, e.g. ‘cherry-picking’, viewed as having potential to become more systemically important if relative size of trading volumes and pay levels continues to shift towards buy-side. Page 96: planned future research to include analysis of impact of remuneration composition on systemic and conduct risk. But is this relatively small number of mentions due to other links to systemic risk and financial stability being kept out of scope of this review?

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