Primary responsibility for increasing the effectiveness of market discipline necessarily rests with market participants
. Nonetheless, prudential supervisors and regulators of the banks and brokerdealers that are critical sources of credit to leveraged institutions should seek to ensure that the necessary improvements in risk-management practices are implemented.
Thus, the right to terminate or close out financial market contracts is important to the stability of financial market participants
in the event of an insolvency and reduces the likelihood that a single insolvency will trigger other insolvencies due to the nondefaulting counterparties' inability to control their market risk.
Ryohei Muramatsu, manager of Group Treasury Asia at Commerzbank in Tokyo, said market participants
are eagerly awaiting the statement to see how the central bank will describe inflationary risks and to assess the possibility of the Fed's tightening its monetary grip as early as September.
''His remark was a big surprise for market participants
and triggered active buying of the euro, especially against the yen,'' Hashimoto said.
Agreements were not forced upon unwilling market participants
. Creditors and counterparties calculated that LTCM and, accordingly, their claims, would be worth more over time if the liquidation of LTCM's portfolio was orderly as opposed to being subject to a fire sale.
dollar rose into the upper 123 yen range Monday morning in Tokyo and the euro surged to yet another fresh record high in the lower 168 yen zone with market participants
drawn to higher yielding currencies compared to the yen.
By exploiting opportunities that the incumbents have had little incentive to go after, the new entrants will radically alter the business models of all market participants
It is a traditional and essential role for the President and senior officers of the Federal Reserve Bank of New York to be talking to, and receiving calls from, market participants
regarding significant developments and potential dislocations.
Tool Pliers: Key Market Participants
Product innovations are readily adopted by the key market participants
in the tool pliers market.