Workshop on Market Dysfunction

March 3, 2023 – Chicago, IL

Market dysfunction has the potential to disrupt financial and/or monetary stability. Recent years have seen a number of high profile episodes of severe financial market dysfunction, eliciting central bank responses. In a global environment of greater volatility and rising rates, many central banks are assessing the range of tools available to address severe dysfunction episodes. A Bank for International Settlements Markets Committee Working Group on the topic recently highlighted a range of challenges, including:

  • How to ensure that central banks’ market functioning interventions act as backstops and do not interfere with normal market activity or substitute for private sector risk management or appropriate regulation.
  • How to balance effectiveness of the intervention against the potential for moral hazard or the risk of loss of public funds, particularly when determining which firms are eligible to be counterparties for the intervention.”
  • How to manage the interactions between tools for monetary policy and market functioning objectives.

This workshop discussed these topics.

Attendance at this event was by invitation only.

This event was in person and was not livestreamed. 

Please view the event recordings


10:00am: Opening Remarks

Andrew Hauser (Bank of England) View Hauser Speech Here

Lorie Logan (Federal Reserve Bank of Dallas) View Logan Speech Here



11:15am: Panel 1

Reflections on Experience with Recent Episodes of Market Dysfunction in Europe and the UK

Chair: Anil Kashyap

Dawn Fitzpatrick (Soros Fund Management), Imène Rahmouni-Rousseau (ECB), and Jeremy Stein (Harvard University)



2:00pm: Panel 2

Design Issues for Central Bank Facilities In the Future

Chair: Michelle Bowman (Federal Reserve Board)

Darrell Duffie (Stanford University), Don Wilson (DRW Holdings), and Nate Wuerffel (Federal Reserve Bank of New York)