National Stock Exchange of India and NYU Stern starts Indian Financial Markets Conference 2015

Stern-NSEThe National Stock Exchange (NSE), India’s leading stock exchange, and New York University Stern School of Business (NYU Stern), one of the world’s premier research and teaching institutions, began their third annual ‘Indian Financial Markets Conference 2015’ today in Mumbai, India. This two-day conference is an outcome of the joint initiative by the NSE and NYU Stern to: (a) promote the study of Indian financial markets, (b) provide a platform for industry and academia to complement each other, and (c) deliver effective research support for policy making. The primary objective of this conference is to present and discuss the research papers which were selected on the basis of a global call for papers.

The NSE-NYU Stern Indian Financial Markets Conference 2015 is convening a number of financial market leaders from industry, the public sector and academia.

“While we, at NYU Stern, understand the markets and institutions in developed economies to an extent, we need to do much more work to understand more fully the markets and institutions in emerging markets, such as India.  The NSE-NYU Stern partnership provides a network of academics interested in studying the Indian financial markets,” said Professor Viral Acharya of NYU Stern.

Read the full press release here.

More coverage was also featured on India Education Diary.

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Alumni Engagement: Andrew Koh on Ops Risk Practices and Strategies

On July 29, MSRM Class of 2010 alum, Andrew Koh spoke at the OpRisk Asia conference on “Permeating Risk Culture from Boardrooms to Front Offices.” The following is an excerpt from

N12220351 KohOn July 29, speakers at the OpRisk Asia conference in Singapore acknowledged that culture and conduct risk lay at the root of many operational risk failures, but warned that trying to impose company-wide cultural change could be an impossible task.

Instead, companies should try to drive change by picking a few ‘risk champions’ in each department and linking their compensation to culture and conduct risk metrics, argued Andrew Koh, deputy chief risk control manager at China Construction Bank in Singapore.

“You can’t reward everyone for cultural change, but you can appoint two or three risk champions in every department with key performance indicators for the implementation [of cultural change] and link that to reward or compensation,” Koh said. “Some of them [in China Construction Bank] have gone on to work in op risk as well later because they came to understand it very well … you will need to get HR involved to check that you are in line with hiring and compensation policies. And make it something easy to start with like the department’s risk and control self-assessment [RCSA] passing audit – not something like ‘zero risk incidents in the department’. You can put more objectives in for people who want to do more, to set the bar higher.” Building up the pool of risk-trained staff in each department would have its own advantages, he added: “A lot of banks don’t have a big crop of people to manage risk – and, when they need to react to an incident, you can tell.”

Read more here.

Andrew also spoke at the 6th Annual ASEAN Technology & Innovation – the Future of Banking & Financial Services on July 22, 2015. He covered Mitigating Risks in Technology to Drive Innovative Payment Solutions.

On October 14, 2015 Andrew will be traveling to Hong Kong to speak on the topic of Defending Against Cyber Security Threats To The Payment & Banking System. This topic was also covered in the Third Annual Risk Management Symposium on May 30, 2015.

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Alpha, Beta, and Beyond by Professor Nouriel Roubini

The following is an excerpt from Project Syndicate:

nroubiniEven in normal times, individual and institutional investors alike have a hard time figuring out where to invest and in what. Should one invest more in advanced or emerging economies? And which ones? How does one decide when, and in what way, to rebalance one’s portfolio?

Obviously, these choices become harder still in abnormal times, when major global changes occur and central banks follow unconventional policies. But a new, low-cost approach promises to ease the challenge confronting investors in normal and abnormal times alike.

In the asset management industry, there have traditionally been two types of investment strategies: passive and active. The passive approach includes investment in indices that track specific benchmarks, say, the S&P 500 for the United States or an index of advanced economies or emerging-market equities. In effect, one buys the index of the market.

Read the full article on Project Syndicate here.

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Professor Lawrence White on the Implications of Glass-Steagall

lwhiteThe following is an excerpt from Washington Examiner:

The Volcker Rule, criticized for its complexity, has already forced some megabanks to divest in ways they might not have had to under the late-stage versions of Glass-Steagall. Goldman Sachs, for instance, spun off its proprietary trading business in preparing for implementation of the Volcker Rule.

The 21st Century Glass-Steagall Act would go far beyond that, White said, forcing, for instance, Bank of America to divest itself of investment bank Merrill Lynch.

The financial industry would survive, he said, but might not be safer. “If Glass-Steagall, with all of its pristine beauty of 1933, had still been in place, nothing would have been different” in 2008, he said.”

Read the full article here.

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Professor Nouriel Roubini on Greece’s Economic Recovery

The following is an excerpt from Reuters:

nroubini“”It’s a constructive deal, positive for the euro zone, and means that for now, those tail risks that would have led to a more fundamental repricing of euro zone assets should not occur,” Roubini told Reuters in an interview in London.

“You don’t necessarily have to be negative or underweight on the euro zone because there are some of these risks.”

After 17 hours of negotiation, euro zone leaders made Greece surrender much of its sovereignty to outside supervision in return for agreeing to talks on an 86 billion euros bailout to keep the near-bankrupt country in the euro.

A Grexit would call into question the whole euro zone project, which would cease to be a true monetary union and instead turn into a collection of fixed exchange rate regimes. The inevitable question would then be, ‘Who’s next to leave?’.

But that has been avoided, at least for now, lifting the clouds of market and economic uncertainty. As Roubini noted, the euro zone had been performing relatively well in the first few months of the year, according to activity, sentiment and growth indicators.

“The question is, do you have enough time to do the kind of structural reforms that are going to increase potential growth over the medium term?””

Read the full article here.

Additional coverage on the Grexit was also published in the Financial Times.

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