Day: 2 March 2018

Carney: Cryptos Pose No Risk to Financial Stability

In a speech delivered today, Bank of England Governor, Mark Carney, stated that crypto-assets don’t currently pose a risk to the stability of financial markets, even as he declared that cryptocurrencies are “failing” as a form of money.

Speaking at the inaugural Scottish Economics Conference at Edinburgh University on the subject of the future of money, Carney’s speech was heavily focused on cryptocurrencies.

Addressing the question of how well cryptocurrencies fulfill the traditional role of money, Carney argued that the answer has to be judged against the functioning of the entire cryptocurrency ecosystem. This ecosystem includes exchanges that enable the buying and selling of cryptocurrencies, miners who create new coins and verify transactions and the wallet providers who effectively offer custody services.

CME to Launch SOFR Futures

CME Group has announced it will launch monthly and quarterly Secured Overnight Financing Rate (SOFR) futures on May 7, pending regulatory review.
The announcement comes one day after the Federal Reserve Bank of New York said it would start publishing Treasury repo reference rates from April 3. The futures will be based on the Alternative Reference Rates Committee-endorsed SOFR index, and although correlated with Libor and effective federal funds rates, SOFR, a broad Treasury repo index, is distinct from these rates, CME says.