Experience Stern | News & Events

Three industry experts led the discussion: NYU Stern Nobel Laureate Professor Robert Engle, who recently developed The NYU Stern Systemic Risk Rankings; Darrell Duffie, Dean Witter Distinguished Professor of Finance at Stanford University; and Commissioner and Former Acting Chairman of the US Commodities Future Trading Commission Michael Dunn.

Read the conference press release

NYU Stern Nobel Laureate Professor Robert Engle presented on the systemic risks posed by central counterparties (CCPs) under Dodd-Frank. He warned conference attendees that some of the new measures under Dodd-Frank, such as requiring the use of CCPs for OTC derivatives transactions, may create new systemic risks while reducing old ones.

• View Professor Engle's full presentation
• Learn more about The NYU Stern Systemic Risk Rankings, an aid to regulators to monitor which firms are potentially the most systemically risky to the financial system
• Learn more about "Regulating Wall Street," a newly published book by 40 Stern academics that provides a definitive analysis and offers solutions to address the flaws in the Dodd-Frank Act

Stanford Professor Darrell Duffie's presentation, "Systemic Exposures: A 10-by-10-by-10 Approach," challenged the audience to think about managing systemic risk in a dramatically different fashion. According to Professor Duffie, the key—in headline form—is having a systemic risk regulator that is able to monitor the sizes and directions of flows of risk through the center of the financial system. The top 10 systemically important firms would report their gain or loss with each of their top 10 counterparties, for each of 10 key stress scenarios.

• View Professor Duffie's full presentation and proposal
• Read the full conference agenda
• Find out more about NYU Stern's Volatility Institute

NYU Stern Nobel Laureate Professor Robert Engle

Darrell Duffie, Dean Witter Distinguished Professor of Finance at Stanford University