This note, published in pursuit of the FMLC’s educational remit, outlines some of the legal issues which arise in the context of monetary policy and monetary financing, and considers a recent judicial decision in relation to the distinction between monetary policy and monetary financing, so as to highlight particular consequences for stimulus policies by National Central Banks.
In March 2020, governments around the world took action to stall the advent of the novel coronavirus (Covid-19) by implementing a range of “social distancing” rules. These measures have meant that market participants may be unable to print and sign documents with “wet ink” in accordance with usual practice. In this context, the FMLC has published this paper surveying the position of electronic signatures under key jurisdictions.
The Secretariat is considering convening a stakeholder teleconference to discuss such issues in the first half of April. Should you wish to join such a call, please email Venessa Parekh at firstname.lastname@example.org.
You may also like to know that issues affecting particular sectors will be discussed on an ad hoc basis by the FMLC’s discussion groups, known as Scoping Forums. Details about the fields in which these Forums convene, as well as minutes of previous meetings which provide an indicative overview of the topics normally discussed, can be found here. If you would like to join one of these Forums, please contact Katja Trela-Larsen at email@example.com.
The novel coronavirus (COVID-19) is having an immense, if rapidly evolving, impact on individuals, communities, and organisations. In addition to effects on the supply and demand, COVID-19 has jolted the financial markets. Since February 21, 2020, bond yields, oil, and equity prices have sharply fallen, and trillions of dollars, across almost all asset classes, have sought safety. In the United States, 10-year bond yields have tumbled below 0.5 percent and equity prices on major stock indices around the world have fallen.
Given the response by governments around the world to COVID-19, which has included steps such as closing down places of business and restricting the movement of people, several legal issues are likely to arise in the context of the financial markets.
A short note highlighting key issues of legal uncertainty arising in the context of the wholesale financial markets can be found here.
The FMLC will convene for a closed meeting via teleconference next week to discuss these issues. Should you wish to bring any other and/or related issues to the Committee’s attention, please email Venessa Parekh at firstname.lastname@example.org by COB Tuesday 24 March 2020.