Thank you, Athanasios, and thank you for the opportunity to be part of this very worthy celebration.1 In support of the theme of this conference, I do have some thoughts on the Shadow Open Market Committee's contributions to the policy debate, in particular its advocacy for policy rules. But before I get to that, I am going to exercise the keynote speaker's freedom to talk about whatever I want. To that end, I want to take a few minutes to offer my views on the economic outlook and its implications for monetary policy. So let me start there, and afterward I will discuss the role that policy rules play in my decision making and in the deliberations of the Federal Open Market Committee (FOMC). In the three weeks or so since the most recent FOMC meeting, data we have received has been uneven, as it sometimes has been over the past year. I continue to judge that the U.S. economy is on a solid footing, with employment near the FOMC's maximum employment objective and inflation in the vicinity of our target, even though the latest inflation data was disappointing. Real gross domestic product (GDP) grew at a 2.2 percent annual rate in the first half of 2024, and I expect it to grow a bit faster in the third quarter. The Blue Chip consensus of private sector forecasters predicts 2.3 percent, while the Atlanta Fed's GDPNow model, based on up-to-the moment data, is predicting real growth of 3.2 percent. Earlier, there were concerns that GDP in the first half of this year was overstating the strength of the economy, since gross domestic income (GDI) was estimated to have grown a mere 1.3 percent in the first half of this year, suggesting a big downward revision to GDP was coming. But revisions received after our most recent FOMC meeting showed the opposite—GDI growth was revised up substantially to 3.2 percent. This change in turn led to an upward revision in the personal saving rate of about 2 percentage points in the second quarter, leaving it at 5.2 percent in June. This revision suggests that household resources for future consumption are actually in good shape, although data and anecdotal evidence suggests lower-income groups are struggling. These revisions suggest that the economy is much stronger than previously thought, with little indication of a major slowdown in economic activity. That outlook is supported by consumer spending that has been and continues to be strong. Though the growth in personal consumption expenditures (PCE) has moderated since the second half of 2023, it has continued at an average pace of close to 2.5 percent so far this year. Also, my business contacts believe that there is considerable pent-up demand for durable goods, home improvements, and other big-ticket items, demand that built up due to high interest rates for credit cards and home equity loans. Now that rates have started to come down and are expected to come down more, consumers will be eager to make those purchases. For business spending, purchasing managers for manufacturers describe ongoing weakness in that sector, but those for the large majority of businesses outside of manufacturing continue to report a solid expansion of activity. Now let's talk about the labor market. Only a couple months ago, it appeared that the labor market was cooling too quickly. Low numbers for job creation and a jump in the unemployment rate from 4.1 percent in June to 4.3 percent in July raised risks that the labor market was deteriorating. To remind you of how bad the markets viewed the July data, some Fed watchers were calling for an emergency FOMC meeting to discuss a rate cut. While the unemployment rate ticked down in August, job growth was once again well below expectations. Many were arguing that the labor market was on the verge of a serious deterioration and that the Fed was behind the curve even after a 50 basis point cut in the policy rate at the September FOMC meeting. Then we got the September employment report. Job creation in September was unexpectedly strong at 254,000 and the unemployment rate fell back down to 4.1 percent, which is where it was in June. The report also showed big upward revisions to payroll gains for the previous two months. Together, the message was loud and clear: While job creation has moderated and the unemployment rate has risen over the past year, the labor market remains quite healthy. Along with other new data on the labor market, the evidence is that labor supply and demand have come into balance. The number of job vacancies, a sign of strength in the labor market, has fallen gradually since the beginning of the year. The ratio of vacancies to unemployed is at 1.2, about the level in 2019, which was a pretty strong labor market. To put this number into perspective, recent research has shown that this ratio has been above 1 only three times since 1960.2 The quits rate, another sign of labor market strength, has fallen lower than it was in 2019, a decrease which partly reflects that the hiring rate has fallen as labor supply and demand have come into better balance. In sum, based on payrolls, the unemployment rate and job revisions, there has been a very gradual moderation in labor demand relative to supply, but not a deterioration. The stability of the labor market, as reflected in these two measures as well as the other metrics I mentioned, bolsters my confidence that we can achieve further progress toward the FOMC's inflation goal while supporting a healthy labor market that adds jobs and boosts wages and living standards for workers. I will be looking for more evidence to support this outlook in the weeks and months to come. But, unfortunately, it won't be easy to interpret the October jobs report to be released just before the next FOMC meeting. This report will most likely show a significant but temporary loss of jobs from the two recent hurricanes and the strike at Boeing. I expect these factors may reduce employment growth by more than 100,000 this month, and there may be a small effect on the unemployment rate, but I'm not sure it will be that visible. Since the jobs report will come during the usual blackout period for policymakers commenting on the economy, you won't have any of us trying to put this low reading into perspective, though I hope others will. Looking ahead, I expect payroll gains to moderate from their current pace but continue at a solid rate. The unemployment rate may drift a bit higher but is likely to remain quite low in historical terms. While I believe the labor market is on a solid footing, I will continue to watch the full range of data for signs of weakness. Meanwhile, inflation, after showing considerable progress for several months toward the FOMC's 2 percent target, likely moved up in September. The consumer price index grew 0.2 percent over the past month, 2.1 percent over the past three months, 1.6 percent over six months and 2.4 percent in the past year. Oil prices fell over most of the summer but then more recently have surged. Excluding energy and also food prices that likewise tend to be volatile, and just as it did in August, core CPI inflation printed at 0.3 percent in September and 3.3 percent over the past year. Private-sector forecasts are predicting that PCE inflation, the FOMC's preferred measure, will also move up in September. Core PCE prices are expected to have risen around 0.25 percent last month. While not a welcome development, if the monthly core PCE inflation number comes in around this level, over the last 5 months it is still running very close to 2 percent on an annualized basis. We have made a lot of progress on inflation over the course of the last year and half, but that progress has clearly been uneven—at times it feels like being on a rollercoaster. Whether or not this month's inflation reading is just noise or if it signals ongoing increases, is yet to be seen. I will be watching the data carefully to see how persistent this recent uptick is. The FOMC's inflation goal is an average of 2 percent over the longer run and there are some good reasons to think that price increases will be modest going forward. I am hearing reports from firms that their pricing power seems to have waned as consumers have become more sensitive to price changes. There has also been a steady slowing in the growth of labor compensation. It is true that average hourly earnings growth in September ticked up to 4 percent over the past year. And though it might seem like wage increases of 4 percent a year would put upward pressure on inflation that is near 2 percent, that might not be true if one considers productivity, which has grown at an average annual rate of 2.9 percent for the past five quarters. Some of this strength was making up for productivity that shrank due to the pandemic, but the longer it continues—up 2.5 percent for the second quarter—the better productivity supports wage growth of 4 percent, or even higher, without driving up inflation. All that said, I will be watching all the data related to inflation closely. With the labor market in rough balance, employment near its maximum level, and inflation generally running close to our target over the past several months, I want to do what I can as a policymaker to keep the economy on this path. For me, the central question is how much and how fast to reduce the target for the federal funds rate, which I believe is currently set at a restrictive level. To help answer questions like this, I often look at various monetary policy rules to assess the appropriate setting of policy. Policy rules have long been of serious interest to the Shadow Open Market Committee. So before I turn to my views on the future path of policy, I thought I would talk about monetary policy rules versus discretion and begin with some background about the use of rules at the FOMC. For a brief overview of the history of the advent of rules at the Board, I have been directed to the second chapter of The Taylor Rule and the Transformation of Monetary Policy written by George Kahn, and I have also consulted the memories of longtime members of the Board staff.3 Rules came along in the 1990s as the Fed was moving away from monetary targeting, focusing more on interest-rate policy, and taking its first major steps toward increased transparency. There was immediate interest in Taylor-type rules among Fed staff, and even some contributions of research.4 There was a presentation to the FOMC on rules in 1995, and that was the same year that John Taylor's Bay Area colleague, Janet Yellen, was apparently the first policymaker to mention the Taylor rule at an FOMC meeting. While FOMC decisions mimicked a Taylor rule much of the time under Chairman Alan Greenspan, he was famously an advocate of "constructive ambiguity" in communication, and he and other central bankers since have resisted the suggestion that decisions could be handed over to strict rules. Today, of course, a number of rules-based analyses are included in the material submitted to policymakers ahead of every FOMC meeting, and we publish the policy prescriptions of different rules as part of the Board's semi-annual Monetary Policy Report. Rules have become part of the furniture in modern policymaking. As everyone here knows, but for the benefit of other listeners, Taylor rules relate the level of the policy interest rate to a limited number of other economic variables, most often including the deviation of inflation from a target value and a measure of resource use in the economy relative to some long-run trend.5 There are numerous forms of the Taylor rule, but they generally fall into two categories. The first of these, an inertial rule, has the property that the policy rate changes only slowly over time. I tend to think of it as an approach that captures the reaction function of a policymaker in a stable economy where the forces that would tend to change the economy and policy build over time. When change does occur, a gradual response may give policymakers time to assess the true state of the economy and the possible effects of their decision. One example I can use is the steadfastness of policymakers in the latter part of 2023, when inflation fell more rapidly than was widely expected, and again in early 2024, when it briefly escalated. The FOMC did not change course either time, an approach validated by inertial rules. A non-inertial rule, on the other hand, allows and in fact calls for relatively quick adjustments to policy. The guidance from these rules is more useful when there is a turning point in the economy, and policymakers need to stay ahead of events. One saw these non-inertial rules prescribe a sharper rise in the policy rate above the effective lower bound starting in 2021 as inflation began climbing above the FOMC's 2 percent target. Non-inertial rules are also more useful in the face of major shocks to the economy such as the 2008 financial crisis and the start of the pandemic. The great promise of rules is that they provide a simple and reliable guide to policy, but what should one do when different rules recommend different policy actions given the same economic conditions? Right now, inertial rules tell us to move slowly in reducing policy rates toward a neutral stance that neither restricts nor stimulates the economy. On the other hand, non-inertial rules tell us to cut the policy rate more aggressively, subject to the caveat that one is certain of the values of all the 'star' variables: U*, Y* and r*. I think the answer is that while rules are valuable in helping analyze policy options, they have limitations. Among these are the limits of the data considered, which is typically narrower than the range of data that policymakers use to make decisions, and also the fact that simple policy rules do not take into account risk management, which is often a critical consideration in policy decisions. So, while policy rules serve as a good check on discretionary policy, there are times when discretion is needed. As a result, I prefer to think of them as "policy rules of thumb". Turning to my view for the path for policy, let me discuss three scenarios that I have had in mind to manage the risks of upcoming decisions in the medium term. The first scenario is one where the overall strong economic developments that I have described today continue, with inflation nearing the FOMC's target and the unemployment rate moving up only slightly. This scenario implies to me that we can proceed with moving policy toward a neutral stance at a deliberate pace. This path would be based on the judgment that the risks to both sides of our dual mandate are balanced. In this circumstance, our job is to keep inflation near 2 percent and not slow the economy unnecessarily. Another scenario, less likely in light of recent data, is that inflation falls materially below 2 percent for some time, and/or the labor market significantly deteriorates. The message here is that demand is falling, the FOMC may suddenly be behind the curve, and that message would argue for moving to neutral more quickly by front-loading cuts to the policy rate. The third scenario applies if inflation unexpectedly escalates either because of stronger-than-expected consumer demand or wage pressure, or because of some shock to supply that pushes up inflation. As we learned in the recovery from the pandemic recession, when demand was stronger and supply weaker than initially expected, such surprises do occur. In this circumstance, as long as the labor market isn't deteriorating, we can pause rate cuts until progress resumes and uncertainty diminishes. Most recently, we have seen upward revisions to GDI, an increase in job vacancies, high GDP growth forecasts, a strong jobs report and a hotter than expected CPI report. This data is signaling that the economy may not be slowing as much as desired. While we do not want to overreact to this data or look through it, I view the totality of the data as saying monetary policy should proceed with more caution on the pace of rate cuts than was needed at the September meeting. I will be watching to see whether data, due out before our next meeting, on inflation, the labor market and economic activity confirms or undercuts my inclination to be more cautious about loosening monetary policy. Whatever happens in the near term, my baseline still calls for reducing the policy rate gradually over the next year. The median rate for FOMC participants at the end of 2025 is 3.4 percent, so most of my colleagues likewise expect to reduce policy over the next year. There is less certainty about the final destination. The median estimated longer-run level of the federal funds rate in the Committee's Summary of Economic Projections (SEP) is 2.9 percent, but with quite a wide dispersion, ranging from 2.4 percent to 3.8 percent. While much attention is given to the size of cuts over the next meeting or two, I think the larger message of the SEP is that there is a considerable extent of policy accommodation to remove, and if the economy continues in its current sweet spot, this will happen gradually. Thank you again, for the opportunity to be part of today's conference, and for allowing me to share some thoughts, relevant to monetary policy rules and my day job back in Washington. The Shadow Committee has elevated the public debate about monetary policy. May you continue to play that role for many years to come. 1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Open Market Committee.  2. See Pierpaolo Benigno and Gauti B. Eggertsson (2024), "Revisiting the Phillips and Beveridge Curves: Insights from the 2020s Inflation Surge (PDF)," paper presented at "Reassessing the Effectiveness and Transmission of Monetary Policy," a symposium sponsored by the Federal Reserve Bank of Kansas City, held in Jackson Hole, Wyo., August 23.  3. See Evan F. Koenig, Robert Leeson, and George A. Kahn, eds. (2012), The Taylor Rule and the Transformation of Monetary Policy (Stanford, Calif.: Hoover Institution Press). I was assisted in this brief history by Board economists James Clouse and Edward Nelson.  4. See Dale W. Henderson and Warwick J. McKibbin (1993), "A Comparison of Some Basic Monetary Policy Regimes for Open Economies: Implications of Different Degrees of Instrument Adjustment and Wage Persistence," Carnegie-Rochester Conference Series on Public Policy, vol. 39 (December), pp. 221–317). This paper was also published in the International Finance Discussion Papers series and is available on the Board's website at https://www.federalreserve.gov/pubs/ifdp/1993/458/ifdp458.pdf.  5. For a variety of Taylor rules and their implication for policy, see the Monetary Policy Report, available on the Board's website at https://www.federalreserve.gov/monetarypolicy/publications/mpr_default.htm. 

Malaysian financial services practitioners have gained a competitive edge through a new collaboration with the Chartered Institute for Securities & Investment (CISI), enhancing their professional lifelong learning and offering the opportunity to apply for CISI membership. The Islamic Banking and Finance Institute Malaysia (IBFIM) is a leading talent development institution specialising in industry technical certifications, with a vision to be the global reference centre for Islamic finance. This extended partnership with CISI will advance professionalism in the Malaysian financial services market by providing access to CISI’s Continuing Professional Development (CPD) scheme, Institute membership, and adherence to a Code of Conduct through its digital learning platform. IBFIM’s CQIF holders are eligible to join CISI as Associate Members and, upon completing the required CPD years, can upgrade to individually Chartered Membership with CISI. Yusry Yusoff, IBFIM Chief Executive Officer, stated: “This collaboration reflects our commitment to upskilling financial service practitioners, particularly those from the Islamic financial services industry, and providing them with a platform to expand their networks as qualified Affiliate or Associate members, with the opportunity to advance to Chartered Membership with CISI. We look forward to this partnership, which is set to promote lifelong learning and uphold the highest standards of professional excellence across various financial services disciplines in collaboration with CISI.” Tracy Vegro, CISI Chief Executive Officer, said: “CISI is committed to delivering a high-quality, lifelong learning CPD and membership experience to financial services practitioners globally. This partnership confirms our dedication to extending this expertise to Malaysian professionals, complementing IBFIM’s mission to elevate the standards of the financial services profession in Malaysia through enhanced skills and knowledge.”

“On behalf of HKEX, I would like to warmly welcome the appointment of Dr Kelvin Wong as the next Chairman of the SFC. I have had the privilege of working closely with Kelvin over the past two decades, where we served together on the Listing Committee, on the board of the SFC, and at a number of other organisations. I know that his deep insights and his superb leadership skills, coupled with his wide-ranging experience in financial reporting, will be critical in strengthening the vibrancy and attractiveness of Hong Kong's capital markets, and I very much look forward to collaborating with Kelvin and his team to achieve even more successes for our IFC.”“I would also like to thank Mr Tim Lui for his dedication and contributions as Chairman of the SFC over the past six years. His strong leadership has supported the further development of Hong Kong's financial markets, which have demonstrated resilience and enhanced competitiveness during some of the most challenging macroeconomic conditions for the city. We wish him the very best in the next chapter of his distinguished career.”

The Exchange's markets are closed today, October 14, 2024.

Monetary Policy: Lessons from the pandemic Swati Dhingra Member of the Monetary Policy Committee

  Pedro Calef and Rafael Ruiz during the bell ringing It is the fourth company to join BME Growth in 2024 BME Growth today welcomed EV MOTORS. The traditional ringing of the bell at the Madrid Stock Exchange was led by Rafael Ruiz, president of the company, and Pedro Calef, CEO, who were accompanied by Jesús González, Managing Director of BME Growth. The company, which is the fourth to debut on this market so far this year, took as a reference a price of 6.88 euros per share, which implies a total valuation of the company of 329 million euros. ‘We welcome EV Motors, which has been the largest financing operation prior to the incorporation of a company into BME Growth, a market with a strong presence of companies linked to the transition towards a more sustainable economy. This profile is reinforced today with the arrival of a company that offers comprehensive solutions for the electric car industry,’ explained Jesús González. The company has started trading under the code " EBROM". The company's Registered Advisor is DCM Asesores, while Renta 4 Banco will act as Liquidity Provider. Photos of the EV MOTORS Bell Ringing are available on Flickr.

Today, ELITE hosts the 5th edition of its strategic Think Tank ELITE Day “Purpose-driven companies: lead the future with impact” with 350+ international C-Level representatives of ELITE network companies, partners and investors Launch of the first ELITE Impact Observatory, a unique research measuring the impact of ELITE, in terms of financial performance and employment, on the companies belonging to the network Over 2,300 companies and 200 partners in Europe are part of the ELITE network             ELITE, the Euronext ecosystem supporting privately-owned small and medium-sized enterprises (SMEs) in their sustainable long-term growth, today launches the ELITE Impact Observatory on the occasion of ELITE Day 2024. The analysis measures the impact of ELITE in terms of financial performance and employment for the companies within the network. The research is based on a sample of 500 ELITE companies, representative of the main sectors in ELITE and selected based on their specific ATECO code. The selected companies have a turnover of between €10 million and €300 million. The ELITE sample was then compared with a benchmark sample of around 1,200 companies. The benchmark sample was defined using a statistical approach based on the following criteria: built according to financial parameters and ATECO code in line with the ELITE sample; structured to maintain, in percentage terms, the weight of each geographic area within the ELITE sample; numerically larger than the ELITE sample. The analysis, covering the period from 2019 to 2022, observed trends in revenues, EBITDA, and employment. These three variables are significant for assessing company growth in terms of size, margins, and the ability to create jobs, and therefore also impact employment. In terms of revenues, the ELITE sample recorded a compound annual growth rate (CAGR) of +11.8% over the four years analysed, compared to a CAGR of +7.8% for the benchmark sample. Looking at absolute values, from 2019 to 2022, the ELITE sample saw a 52.2% greater average revenue growth than the benchmark sample. Regarding margins, the ELITE sample recorded a compound annual growth rate (CAGR) of EBITDA of +17.1% over the four years, compared to a CAGR of +12.4% for the benchmark sample. In absolute terms, from 2019 to 2022, the ELITE sample recorded 37% higher average EBITDA growth compared to the benchmark sample. In terms of employment, the ELITE sample recorded a compound annual growth rate (CAGR) of +15.5% in the number of employees, compared to +0.8% for the benchmark sample. In absolute terms, from 2019 to 2022, the ELITE sample saw an average employee growth rate of 1,825% higher than that of the benchmark sample. The analysis results clearly indicate how ELITE's typical managerial, governance, planning and financial tools create a highly positive impact on the already virtuous and forward-thinking companies that are selected to join this ecosystem, which is dedicated to the sustainable growth of small and medium-sized enterprises. ELITE Day – Purpose-driven companies: lead the future with impact The fifth edition of ELITE Day, held today in Milan at Borsa Italiana’s premises in Palazzo Mezzanotte, aims to analyse how companies driven by a clear and shared purpose are not only transforming their sectors but also shaping the future by creating a broader, significant and lasting impact. The event, supported by the United Nations Global Compact Network Italy (UNGCN Italy), includes debates, interviews, in-depth panels, and opportunities for discussions between entrepreneurs, top managers, investors, and advisors in the ELITE network. It provides a platform to explore the priorities of virtuous companies, drawing inspiration from CEOs and business leaders who align their growth objectives with tangible and lasting impact for customers, employees and all stakeholders. ELITE Day reaffirms itself as a strategic Think Tank attracting a European audience of over 350 C-Level representatives from companies, partners, and investors in the network, exposed to renowned speakers and testimonials. These include Eric de Montgolfier, CEO of Invest Europe; Federico Grom, Serial Entrepreneur; Eleonora Briolini, Board Member and Head of Tax at BDO Italy; Cédric Lowenbach, Development Director at Bpifrance; Tommaso Paoli, CEO of NUO; Jorge Portugal, General Manager of COTEC; Marco Frey, President of United Nations Global Compact Italy; Emanuele Preve, Shareholder CFO & Board Member of Riso Gallo; Marie-Claire Daveu, Chief Sustainability Officer and Institutional Affairs of Kering; Andrea D'Onofrio, Head of Data & AI Western Europe Microsoft; Pasquale Gravina, Leadership & Training Advisor.View the ELITE Day programme. ELITE’s numbers and European expansion: Since ELITE’s launch, more than 2,300 companies have joined the network, with an aggregate turnover of over €189 billion, representing 42 sectors and employing over 660,000 people.  ELITE is a success story in providing concrete support to many private companies in accelerating their growth: over 260 companies have raised €947 million with ELITE’s direct support, leveraging the Basket Bond® model; 73 companies have listed, raising €4 billion; 180 companies have issued over 300 corporate bonds raising €3.6 billion; and around 600 companies have invested in inorganic growth through over 1,800 M&A operations. Since joining Euronext in 2021, ELITE has been closely aligned with the Group’s strategy to promote European capital markets and support private companies in financing their long-term growth. Currently, the focus is on expanding ELITE into other Euronext geographies. In the Netherlands, in 2022, ELITE and Euronext Amsterdam won participation in the "One Single Hub" promoted by RVO, the Dutch government agency for enterprises under the Ministry of Economic Development, and launched a multi-year programme focused on aggregating and enhancing successful initiatives in collaboration with local stakeholders, while introducing a growth programme for successful SMEs. In July 2023, ELITE officially launched in Portugal with an initial group of Portuguese companies joining the programme, now consisting of 25 of the country’s most promising companies. Other European expansion initiatives include the Italy-France Accelerator, launched in 2021 and followed by a second edition in 2023, the first joint programme between France and Italy to drive the growth of companies in these two markets. In early October 2024, ELITE welcomed its first group of companies in France, marking a significant milestone in the development of its network. More than 100 companies have joined ELITE since the beginning of 2024, including companies in Italy, as well as those set to begin their journey within the pan-European programme on Tuesday 15 October 2024, which covers growing companies from all over Europe, including Italy, France, Portugal and the Netherlands. Marta Testi, CEO of ELITE, commented: “Our purpose serves as the compass guiding every decision and action we take. We firmly believe that connecting businesses and capital is essential for creating sustainable, long-term value. Our goal is to support companies in their growth journey, helping them become stronger, more competitive, and resilient in the global landscape. The ELITE Impact Observatory clearly demonstrates how companies in our ecosystem have experienced significant growth in terms of size, margins and their ability to create jobs. These results, along with the pan-European expansion of ELITE through its integration into the Euronext Group, confirm the key role ELITE plays in accelerating companies' access to the capital and expertise needed for growth.”

The total value of transactions during the month in re view reached € 17,02 million, with an average of € 0,81 million per trading session. Click here for full details.

ISO has expanded the Legal Entity Identifier (LEI) technical standard—ISO 17442—to describe a standard approach for embedding the LEI in digitally signed, tamper-resistant verifiable credentials, known as verifiable LEIs (vLEIs). The publication of ISO 17442-3:2024 standardizes the vLEI—a new form of digitized organizational identity pioneered by GLEIF which answers the global need for the decentralized, automated authentication and verification of legal entities across various industries. The standard describes different types of vLEI credentials developed using the chaining capabilities of Authentic Chained Data Container (ACDC) credentials. This chaining, combined with the secure capabilities of the Key Event Receipt Infrastructure (KERI) protocol for the issuance and revocation of credentials and the pre-rotation of cryptographic keys, allows for the provenance of vLEIs to be traced back to GLEIF as the 'root of trust' for the vLEI trust chain, as well as the organization's LEI in the Global LEI System, which is operated by GLEIF under regulatory oversight.  Notably, the standard describes the use of the vLEI to verify the identity of people that represent an organization in either official or functional roles, both inside and outside the boundaries of the organization. This marks an important step forward in establishing the vLEI as a universally trusted method of digitally verifying the authenticity of persons authorized to act on behalf of an organization, which is a key requirement for sensitive business transactions and other official interactions. Alexandre Kech, CEO of GLEIF, comments: "This is a pivotal moment in the evolution of digital organizational identity. The inclusion of the vLEI in ISO 17442 solidifies its role as the global benchmark for secure, digital verification of legal entities. As the vLEI gains traction, it promises to revolutionize how businesses authenticate and trust each other, enabling seamless interactions in a way that has never been possible before. The vLEI not only enhances security and trust but also drives efficiency and scalability across platforms and industries." The proposal for standardizing the vLEI was brought to ISO by GLEIF. The organization also participated in work efforts for the revision through its membership of the technical committee which manages ISO 17442 (ISO/TC 68 SC 8). Jim Northey, ISO TC 68 Chair and Non-Executive Director, the FIX Trading Community, adds: "ISO TC68 community would like to thank the work of GLEIF in conjunction with ISO TC 68/SC 8 in their innovative approach to provide secure credentials capable of identifying a legal entity and associated role associated with the legal entity which provides a global standard approach for not only managing identity in regulatory reporting but also commerce in general. Having this open globally supported standard for securely identifying counterparties provides a significant improvement in infrastructure that further increases the value of our global legal identifier system." This latest publication marks the ongoing standardization of evolving LEI applications, following the release of ISO 17442-2 in 2020 which defined the use of embedded LEIs within standard X.509 digital certificates, as well as the work of developing ISO 5009, Financial services — Official organizational roles — Scheme for official organizational roles, which can be used within vLEI credentials.

Global Screening Services (GSS), a leading RegTech pioneer, today announced an extended partnership with Swift that will enable financial institutions around the world to access its unique end­ to-end sanctions screening platform over the same infrastructure that they already trust to move money between more than 200 countries and four billion accounts globally.   The collaboration progresses a strategic relationship the two organisations announced in October 2022, and reflects a commitment by Swift, GSS and the GSS Advisory Board, comprising 35 of the world's leading financial institutions, to reduce inefficiency in the global payments ecosystem.   More than 40 billion cross-border transactions are screened each year for sanctions compliance, often multiple times to meet different regulatory requirements across the jurisdictions through which money flows. Almost 99% of those flagged for further investigation turn out to be false positives, creating extra costs and delays. GSS aims to address this challenge, providing a cloud-based, standardised and centralised screening service to eliminate unnecessary screening repetition, frequency of false positives and time to investigate. Enabling connectivity via Swift's secure and resilient network, and standard API solution, adds to the efficiency and significantly reduces the time for financial institutions to implement the GSS utility.   Tom Scampion, CEO and Co-founder of GSS, said: “GSS is committed to improving regulatory compliance and delivering an enhanced customer experience, which our agreement with Swift puts us in a perfect place to provide. We're thrilled to be collaborating with a trusted and secure global platform and are looking forward to our customers unlocking the new benefits on offer.   "Ultimately, our principal focus is to reduce friction and streamline cross-border payments, so working with Swift will help us take this goal to the next level by guaranteeing the protection of end-to-end screened transactions."   Thierry Chilosi, Chief Business Officer at Swift, added: "lndustry-wide collaboration is vital if we're to remove friction from the cross-border payments ecosystem and achieve our collective goals. Working with GSS will enable our community to streamline their sanctions screening processes using their existing Swift connectivity, with GSS' services complementing our own existing capabilities which are helping drive the industry towards an instant and frictionless future.   "Beyond enabling access to GSS via the Swift network, the agreement also encompasses ongoing collaboration on the development of screening standards, enhancing the effectiveness of sanctions compliance testing, and supporting institutional performance benchmarking."

Record Europe, Middle East and Africa (EMEA) ADV of 6.2M, up 30% in Q3 2024 Asia Pacific (APAC) ADV of 1.8M, up 28% CME Group, the world's leading derivatives marketplace, today announced that its international average daily volume (ADV) reached a record 8.4 million contracts in Q3 2024, up 29% year on year. Reflecting all trading reported outside the United States, the record volume was driven by growth across all asset classes, with the highest trading volumes coming from interest rate and equity products, which accounted for three-quarters of the growth in volume.   Interest rate products saw record growth of 32% in quarterly volumes year on year, driven by an increase of 38% growth in SOFR futures and 25% growth in Treasury contracts. In addition, Energy products saw 30% growth, Equities products were up 25%, and record FX volumes increased by 14% in the third quarter. "Our record Q3 international ADV was driven by significant increases in volume across all asset classes in EMEA and APAC, demonstrating how our clients turned to the breadth of our products to navigate unpredictability and volatility," said Julie Winkler, Senior Managing Director and Chief Commercial Officer, CME Group. "In particular, our SOFR and U.S. Treasury futures and E-Mini equity options achieved notable growth. Going forward, we remain focused on partnering with our clients to help them manage risk, pursue opportunities and expand their businesses internationally."  In Q3 2024, EMEA ADV hit a record 6.2 million contracts, up 30% from Q3 2023. Energy, interest rate and foreign exchange products reached new ADV records in EMEA in Q3 2024, growing 37%, 32% and 18% respectively year on year. APAC ADV hit 1.8 million contracts in Q3 2024, up 28% from Q3 2023. The region saw strong quarterly ADV performance in metals, up 49%, while interest rate and equity products ADV were up 33% and 30% year over year respectively. LatAm ADV stood at 181,000 contracts in Q3 2024, up 12% compared to Q3 2023. There was strong quarterly ADV performance in metals, up 37% and energy products, up 30% year over year.  Canada ADV stood at 169,000 contracts in Q3 2024, up 21% YoY. This was a result of strong growth in interest rate and energy products, up 39% and 19% year over year.  Globally, CME Group reported a record ADV of 28.3 million contracts in Q3 2024, up 27% over Q3 2023. This was largely driven by record volume of 14.9 million contracts in interest rate products, up 36% year over year. CME Group's deeply liquid U.S. Treasury complex hit an all-time quarterly ADV record of 8.4 million contracts and SOFR futures reached an all-time quarterly ADV record of 4.1 million contracts.

Boerse Stuttgart Digital, Europe’s leading regulated crypto infrastructure provider partners with  Amazon Web Services (AWS) to boost its product offerings for European financial institutions,  enabling more efficient scalability and facilitating expansion. This will simplify the deployment of Boerse Stuttgart Digital’s solutions tailored to traditional banks, brokers, and asset managers. Across Europe, retail customers and corporates are increasingly seeking reliable avenues to venture into the crypto market. Traditional financial institutions are facing a pivotal choice: to miss out on this structural trend or partner with established infrastructure providers which stand for trust, security, and reliability. Boerse Stuttgart Group has established the largest crypto and digital asset business among European exchange groups: Boerse Stuttgart Digital. Its integrated crypto infrastructure solutions stand for trust, security, and reliability, delivering a one-stop-shop for trading, exchange, and custody for institutional clients. "Trust is paramount in the cryptocurrency and digital assets world," said Dr. Matthias Voelkel, CEO of Boerse Stuttgart Group. "Institutional investors are eager to offer their clients access to cryptocurrencies and digital assets without compromising on trust, security and reliability. That’s why they choose Boerse Stuttgart Digital. With the AWS Cloud we boost our proven and fully regulated infrastructure solutions, enabling institutional clients across Europe to easily build and scale their own crypto businesses.” “We are delighted to be working closely with Boerse Stuttgart Group on their mission to make their crypto infrastructure solutions even more scalable”, said Tanuja Randery, Vice President and Managing Director, Europe, Middle East and Africa (EMEA) at AWS. “As the relationship between AWS and Boerse Stuttgart Digital grows from strength to strength, we look forward to innovating with them to serve the evolving needs of their customer base.”

NZX Limited has today updated its full-year operating earnings1 guidance following strong performance across all business lines. NZX has raised the FY2024 guidance range from $40.0-$44.5 million to $45.0-$49.0 million (normalised to exclude integration and restructuring costs). This represents a move of approximately 10% between the midpoint of the ranges. The revision is primarily due to stronger-than-expected levels of large capital raisings in September 2024, which have fed into increased trading and clearing activity. In addition, both Smart – formally known as Smartshares – and NZX Wealth Technologies, are benefitting from ongoing growth in funds under management and funds under administration respectively. The guidance is subject to market outcomes, particularly with respect to market capitalisation, total capital listed and raised, secondary market value and derivatives volumes traded, funds under management and administration growth and technology costs. Additionally, this guidance assumes there is no material decline in the macro-economic environment and/or market conditions, and there are no significant one-off expenses, major accounting adjustments, other unforeseeable circumstances, or future acquisitions or divestments.

ASX today joined over 60 other exchanges globally in ringing the bell for financial literacy in support of World Investor Week. This annual event, led by the International Organization of Securities Commissions (IOSCO), aims to promote investor education and protection by empowering investors with the tools and knowledge they need to make informed financial decisions.  NSW Treasurer, the Hon Daniel Mookhey MLC joined ASX Managing Director and CEO Helen Lofthouse and schools from across NSW to ring the bell for financial literacy at ASX headquarters in Sydney.  NSW Treasurer, the Hon Daniel Mookhey said: “I’m very pleased to be highlighting the importance of financial literacy at the ASX’s ring the bell for financial literacy event.  “Financial literacy is essential in empowering people to make informed decisions about their money, investments and futures. By promoting education and awareness, we can help more people navigate the complexities of the financial world with confidence.  “The NSW Government is committed to supporting initiatives that enhance financial literacy. We believe that everyone, regardless of their background, should have access to the knowledge and tools needed to make sound financial decisions that will benefit them and their families in the long term. I commend ASX for their focus on investor education and congratulate all the winners of the ASX sharemarket game.” ASX Managing Director and CEO, Helen Lofthouse, said: “World Investor Week unites securities regulators and exchanges, and other financial institutions globally to raise awareness on the importance of financial literacy and informed investing.  “The ASX plays an important role in promoting these objectives, and this event aligns with our intent to enhance financial literacy and empower investors to make sound investment decisions for their future.” The ASX has run its flagship sharemarket game for more than 45 years and we remain committed to this program which promotes investor education in a practical and fun way. Participants are given a hypothetical $50,000 to invest and, based on the returns made, the winners for the 2024 game are: 1st – John Redgrave  2nd – Paul Gabrielides 3rd – Stuart Vaughan All three winners shared similar characteristics in terms of patience and temperament; they were able to ride out the volatility, including choosing the right time to sell. In taking out first place with a portfolio value of slightly more than $67,000, John’s advice for other players is to lose your fear of selling. His ‘winning move’ was to sell and repurchase after a major geopolitical event: “I was surprised the stock markets didn’t fall straight away so I decided to sell all stocks at a good price. The falls in the next week were extensive and I then rebought after the falling finished.” Ignoring the noise and doing your homework was the key takeaway for all three.   “I would like to congratulate this year’s sharemarket game winners and thank everyone that took part,” Ms Lofthouse said. “Financial literacy is the foundation of good investing and ASX is committed to providing investors with the knowledge and tools they need to build confidence in their investment decisions and to navigate both opportunities and risks in the marketplace.”  Further information on World Investor Week 2024 is available on IOSCO’s website.  Information about the ASX sharemarket game and investor education resources is available on ASX’s website.

INTRODUCTION 1.   In the July 2024 Monetary Policy Statement, MAS maintained the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band, with no change to the width of the band or the level at which it was centred. Since then, the S$NEER has been appreciating gradually in line with the policy band. Chart 1S$ Nominal Effective Exchange Rate (S$NEER)   GROWTH BACKDROP 2.   The global economy has remained broadly resilient. Growth has been steady in the US, sustained by domestic demand, but has been weaker in the Euro area. In China, exports were buoyant in the first half of 2024, but domestic spending continued to be subdued amid the housing market downturn. Regional economies meanwhile have benefitted from the sustained upturn in the global electronics cycle, with investments supported by tech-related activities. 3.   Singapore’s major trading partners are expected to stay on a steady expansion path in the quarters ahead. Final demand will be underpinned by further declines in interest rates as inflation moderates worldwide. Recent policy interventions should also help stabilise near-term growth in China. 4.   According to MTI’s Advance Estimates, the Singapore economy expanded by 2.1% on a quarter-on-quarter seasonally-adjusted basis in Q3, accelerating from the average of 0.4% in the first half of the year. Growth momentum was stronger than expected, and was largely underpinned by a step-up in manufacturing output, particularly in the electronics industry. Activity also picked up in the modern services cluster. 5.   For the rest of 2024, Singapore’s growth should be sustained by the ongoing upswing in the electronics and trade cycles as well as the easing in global financial conditions. For the year as a whole, MAS expects GDP growth to come in around the upper end of the 2–3% forecast range. The negative output gap is projected to close in H2 2024. 6.   Next year, the Singapore economy is currently forecast to expand at close to its potential rate. However, there is significant uncertainty around the economic outlook, reflecting continuing risks in the external environment. A sharp escalation in geopolitical and trade conflicts could exert sizeable drags on global and domestic investment and trade. There is also uncertainty around the pace and impact of global macroeconomic policy easing, and with it, the durability of the electronics upturn. INFLATION OUTLOOK 7.   MAS Core Inflation[1] stepped down to 2.6% y-o-y in Jul–Aug, from 3.0% in Q2, as consumer price increases fell across a broad range of goods and services. Excluding the impact of the GST hikes, core inflation is estimated to have edged below 2.0% in Jul–Aug. The seasonally adjusted three-month/three-month rate[2] of core inflation also declined to an annualised rate of 0.9% in August, reflecting a slower pace of price increases in food services, including hawker food, as well as a range of retail and household durable goods. 8.   Core inflation momentum is expected to remain contained in Q4, which would imply a further slowing in its y-o-y rate over the next few months. Core inflation should end the year around 2%, and average between 2.5%–3.0% for 2024 as a whole, down from 4.2% in 2023. CPI-All Items inflation fell to 2.3% y-o-y in Jul–Aug and should come in around 2.5% this year, compared to 4.8% in 2023. 9.   Amid moderate underlying cost pressures, MAS Core Inflation is expected to average around the mid-point of the forecast range of 1.5–2.5% in 2025. Imported costs are forecast to be broadly stable next year, reflecting an anticipated unwinding of oil production cuts and favourable weather conditions for food supply. CPI inflation in Singapore’s major trading partners should also largely be in line with pre-pandemic norms. On the domestic front, unit labour costs are projected to rise more gradually, alongside moderating nominal wage growth as well as a recovery in productivity. 10.  CPI-All Items inflation is forecast to average 1.5–2.5% as well in 2025. Accommodation inflation should slow as leasing demand falls, partly offsetting an anticipated pickup in private transport inflation amid still-firm car purchases. 11.  The risks to Singapore’s inflation outlook are more balanced compared to three months ago. If there is stronger-than-anticipated demand for labour due to upsides in GDP growth, it may take longer for unit labour cost growth to moderate and consequently for services price inflation to normalise. An intensification of geopolitical tensions and commodity price shocks could add to imported costs. However, a significant downturn in the global economy would induce an abrupt easing in cost and price pressures, causing domestic inflation to come in materially lower than expected. MONETARY POLICY 12.  Singapore’s growth momentum has picked up and the negative output gap is projected to close in H2 2024. Barring a weakening in global final demand, the economy should continue to expand at a steady pace and keep close to its potential path in 2025. MAS Core Inflation has stepped down but is anticipated to decline further to around 2% by the end of 2024. 13.  Based on this outlook, MAS assesses that the monetary policy settings are for now still consistent with medium-term price stability. 14.  MAS will therefore maintain the prevailing rate of appreciation of the S$NEER policy band. There will be no change to its width and the level at which it is centred. *** [1] MAS Core Inflation excludes the costs of accommodation and private transport from CPI-All Items inflation. [2] The seasonally adjusted three-month/three-month rate as at August 2024 compares price levels in Jun–Aug 2024 against price levels in Mar–May 2024. This sequential measurement better captures the most recent pace of inflation in the economy. Related: Past Monetary Policy Decisions

Research from the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – has found most KiwiSaver providers are well placed to manage their exposure to the commercial real estate market but more work can be done to mitigate and communicate the risks.  Commercial real estate has become an important alternative asset class for fund managers, and was previously seen as a relatively low-risk investment option within a diversified portfolio.     Last year commercial real estate started to show signs of stress globally – increased interest rates and changes in usage patterns driven by the COVID-19 pandemic, especially around second-tier office buildings and retail investments, were driving down valuations. By the start of 2024, transaction volumes had decreased, causing some overseas real estate funds to limit or suspend redemptions.   In this context, the FMA undertook research to increase our understanding of the exposure of New Zealand KiwiSaver providers to commercial real estate in order to better understand the risks faced by New Zealand investors.    The FMA engaged with 10 fund managers about their commercial real estate investments, including both default and non-default funds and funds of different sizes. Based on the information that fund managers provided, most have good practices in place to identify and manage the risks across their commercial real estate positions.    FMA Chief Economist, Stuart Johnson, said: “What we found in this research was largely reassuring – most New Zealand fund managers have been taking a pretty conservative approach to this sector – in many cases they’re underweight against their own targets.  “In most cases the risk to New Zealand investors seems to be recognised and reasonably moderate.  Most funds appear to have good practices in place to identify and manage the risks associated with commercial real estate.”   The research did, however, find some areas where firms can enhance their risk management practices, said Johnson.   “These include an overreliance on the listed nature of commercial real estate assets for managing liquidity risk. We think some managers might have underestimated the level of liquidity risk associated with both their unlisted and listed commercial real estate assets under the current market conditions. We are also concerned about firms assuming a high degree of liquidity simply because an investment is listed.  “Commercial real estate has long been a positive asset class due to its ability to provide both steady income and growth potential. Over recent decades, it has become an increasingly important part of a well-diversified portfolio. But these investments, like all investments, come with risks,” said Johnson.    “We are saying here that it’s important that fund managers understand and manage these risks properly.”   View Commercial Real Estate and the Managed Funds Industry Research

Click here to download Shenzhen Stock Exchange's market bulletin, issue 31.

As part of the global IOSCO World Investor Week, which took place from October 7-13, 2024, Nigerian Exchange Group Plc (NGX Group), in collaboration with the Securities and Exchange Commission (SEC) and other market operators, organized a series of engaging events aimed at promoting financial literacy and empowering retail investors. These activities highlighted the growing importance of technology and sustainability in modern finance, aligning with the 2024 theme: “Technology, Digital Finance, and Sustainable Finance.” The week kicked-off with a financial literacy seminar at Pan-Atlantic University, Lagos, hosted by NGX Group and the Financial Literacy Technical Committee of SEC. The event attracted hundreds of students eager to learn about the fundamentals of investing, setting the stage for a series of impactful engagements aimed at equipping participants with the knowledge necessary to make informed financial decisions. Following the seminar, the NGX Retail Investor Clinic provided practical insights into capital market strategies from industry experts. The week’s events culminated in the symbolic “Ring the Bell for Financial Literacy”, leveraging the NGX Closing Gong Ceremony to emphasize the ongoing efforts to educate and empower retail investors. Over 200 participants, including representatives from institutions like the Nigerian Higher Education Foundation, the University of Lagos, and GFA Technologies, attended. Dr. Emomotimi Agama, Director-General of SEC, highlighted the importance of investor protection and regulatory oversight in fostering trust. “Our mission is to safeguard investor interests while promoting informed participation,” he emphasized. Temi Popoola, GMD/CEO of NGX Group, speaking on behalf of Alhaji Umaru Kwairanga, Group Chairman of NGX Group, stressed the Group’s leadership in using technology to drive sustainable finance and innovation. Jude Chiemeka, CEO of NGX, reiterated the importance of investor education, stating, “By equipping individuals with the right tools, we’re building a more secure and resilient investment ecosystem.” Other notable contributions included remarks from Femi Shobanjo, CEO of NGX RegCo, on the Exchange’s self-regulatory mandate, and Adedayo Hamzat, GMD of Zedcrest Group, who advocated for technology-driven portfolio diversification. Abimbola Babalola, Head of Trading and Products at NGX, shared insights on leveraging research and technology for smarter investing, while Dabota Ordor, Head of Retail and Digital Services at United Capital Securities, provided strategies for financial planning, budgeting, and risk management to mitigate market risks. The Ring the Bell for Financial Literacy ceremony at NGX brought together SEC officials, market leaders, and key stakeholders in a joint commitment to advancing financial literacy. The week-long activities, executed in collaboration with partners such as United Capital Securities, Zedcrest Group, the Chartered Institute of Stockbrokers (CIS), and the Association of Securities Dealing Houses of Nigeria (ASHON), demonstrated a collective effort to create a more informed, resilient, and empowered retail investor community.

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On Friday, October, 18, Secretary of the Treasury Janet L. Yellen will preside over a meeting of the Financial Stability Oversight Council (Council) at the Treasury Department. The meeting will consist only of an executive session. The preliminary agenda for the executive session includes an update on banking and commercial real estate developments; an update on short-term investment vehicles; an update on Federal Housing Finance Agency proposals related to the Federal Home Loan Banks; an update on private credit; and an update on the Council’s 2024 annual report. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the Council to convene no less than quarterly, but the Council has historically convened on a more frequent basis. The meetings bring Council members together to discuss and analyze emerging market developments and financial regulatory issues. The Council is committed to conducting its business as openly and transparently as practicable, given the confidential supervisory and sensitive information at the center of its work. Consistent with the Council's transparency policy, the Council opens its meetings to the public whenever possible. Open session Council meetings are made available to the public via live webcast and can also be viewed after they occur. Upcoming Council meeting dates and times are posted following the official notification to Council members of an upcoming meeting. Meeting minutes and readouts for past Council meetings are available below. Meeting minutes for the most recent Council meeting are generally approved at the next Council meeting and posted online soon afterwards. * In accordance with the Council’s Transparency Policy, which is available at www.fsoc.gov, this meeting will be held in a closed session to prevent the potential disclosure of information contained in or related to investigation, examination, operating, or condition reports prepared by, on behalf of, or for the use of, an agency responsible for the regulation or supervision of financial markets or financial institutions; information which would lead to significant financial speculation, significantly endanger the stability of any financial market or financial institution, or significantly frustrate implementation of a proposed agency action; information exempted from disclosure by statute or by regulation, or authorized under criteria established by an Executive Order to be kept secret; trade secrets and commercial or financial information obtained from a person and privileged or confidential; inter-agency and intra-agency memoranda or letters which would not otherwise be available by law; and to conduct administrative business of the Council.