Business

The case for free trade is much stronger than the case for free capital movement. The case for free capital movement is weak, because financial markets suffer from very serious failures (right now is a nice example of that).

Leading economist specializing in European monetary integration and financial crises.

So when the economy's booming, banks are going to need 9.5% common equity, 11% Tier 1 capital, and 13% Tier 2 capital.

Financial journalist and media critic specializing in economics and markets.

When credit in an economy is growing faster than the economy itself, a countercyclical capital buffer kicks in, which essentially says that banks need to have more capital in good times.

Financial journalist and media critic specializing in economics and markets.

Possibly the most important thing here is the existence of the first column, setting minimum standards for common equity — which is also known as core Tier 1 capital. Such standards did exist in the past, but they were set extremely low, at just 2%, and so were generally ignored.

Financial journalist and media critic specializing in economics and markets.

No more throwing any old garbage into the Tier 1 bucket and calling it capital: the new standards for common equity are significantly tougher than the old standards for Tier 1 capital in total.

Financial journalist and media critic specializing in economics and markets.

A speculative bubble exists when the price of something does not equal its market fundamentals for some period of time for reasons other than random shocks. [Fundamental] is usually argued to be a long-run equilibrium consistent with a general equilibrium

Mathematician known for Rosser's theorem in mathematical logic and computability theory.

We don't accept basis risk we don't accept counterparty risk- we don't want any fuzziness around what our payout is going to be conditional on the realising of this systematic left tail 'black swan' event.

Hedge Fund Manager & Author of "The Black Swan" Risk Management

I want to either hit a homerun or walk or even strike out. This means I fail far more often than I succeed. But the important point is that what I lose when I fail is trivial, epsilon compared to what I make when I succeed.

Hedge Fund Manager & Author of "The Black Swan" Risk Management

It's absolutely true that a lot of the time the market is indistinguishable from a coin toss. However, when the system is under some stress, when the market is undergoing changes, the coin toss model just doesn't work. The 'black swan' doesn't appear very often in coin-toss land but in agent based complex systems land, it appears quite a lot.

Physics professor studying complex systems, crowd behavior, and social networks.

The absolute biggest risk out there I can identify would be if something went really wrong with China as it is so important to the BRIC and global economic future. Luckily, I think it is a small risk.

Economist who coined the term "BRICS" for emerging markets.

The biggest opportunities relates to the branded companies who are excellent at exploring opportunities in the BRIC and N-11 world, especially those with a consumer brand that is difficult to replicate and compete with, for example German cars, Louis Vuitton.

Economist who coined the term "BRICS" for emerging markets.

This decade, their GDP will increase by about $12 trillion, i.e. they will create another one of themselves! More importantly, the share of consumption in this decade's growth will be bigger and this is where the big opportunity lies. I am especially optimistic about the Chinese consumer.

Economist who coined the term "BRICS" for emerging markets.

It's been a very difficult time, that's why we're here. We're here to preserve people's risk hedging and transfer needs.

Former CEO of CME Group, global derivatives exchange leader.

The second big change I foresee is the continued convergence of the complex OTC derivatives market and the exchange traded futures and equity options market. Those lines will continue to blur due to regulation, legislation, increased capital and margin requirements, increased requirements for trade reporting, and increased pre and post trade price transparency in OTC markets.

Former CEO of CME Group, global derivatives exchange leader.

If you look at the notional value of trading on our exchanges in any given year, they range from $600-700 trillion to a quadrillion (1000 trillion) dollars in total value. People can use these markets very effectively, not just for bona-fide risk hedging and transfer and risk management but also for asset allocation, portfolio management and trading strategies as well.

Former CEO of CME Group, global derivatives exchange leader.

One of the things which is a really distinguishing factor about our markets in contrast to the OTC derivative market is that we're completely open, competitive and transparent with a very high degree of participation, a very high turnover, and a high degree of pre and post trade price transparency. That refers back to that old phrase of 'liquidity begets liquidity'.

Former CEO of CME Group, global derivatives exchange leader.