20 March 2020

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 research@fmlc.org by COB Tuesday 24 March 2020.