A 2022 Primer for Crypto-Trading

A 2022 Primer for Crypto-Trading Andreas Park, Research Director, Rotman FinHub, University of Toronto Download the full paper – PDF Version

Building a Stronger Economic Future: Key Takeaways from Federal Budget 2022

Building a Stronger Economic Future: Key Takeaways from Federal Budget 2022 Victoria Guo, Director, Research, GRI Download the full Report – PDF Version ABOUT THIS REPORT: Finance Minister Chrystia Freeland delivered the federal budget (“Budget 2022”) on Thursday, April 7th, 2022. “A Plan to Grow Our Economy and Make Life More Affordable,” Budget 2022 sets… View Article

Deep Hedging of Derivatives Using Reinforcement Learning

One of the areas in finance where machine learning is having an impact is the hedging of derivative portfolios. If there were no transaction costs, one strategy would be to zero out all the Greek letters (delta, gamma, vega, etc.). But in practice, a trader must follow a partial hedging strategy that reflects trade-offs between risk reduction and transaction costs.

Robo Advisors for Canadian Pension Participants

Robo Advisors for Canadian Pension Participants Denis Latulippe, Laval University John A. Turner, Pension Policy Center Download the full paper – PDF Version Abstract Portfolio management has evolved. Robo advisors provide financial advice to clients who previously did not have access to such assistance because they lacked sufficient amounts of investible assets, and because they… View Article

Digital Assets May Shift Global Trade Currency

The race to develop and adopt global stablecoins (GSC)/central bank digital currencies (CBDC) has the potential to put the stewardship of the global financial system up for grabs.

Progress Toward 2021 Canadian Monetary Policy Renewal

The Bank of Canada (BoC) is in the process of a multi-year review in advance of the renewal of its monetary policy framework in 2021. Culminating in an inflation-control agreement with the Government of Canada every five years, the renewal process adds credibility to the Bank’s inflation objective and underpins its operational independence. This paper is a summary of the virtual workshop the BoC held on August 26th titled “Towards the 2021 Renewal of the Monetary Policy Framework.

Model Risk Management in the Current Pandemic Environment

The rapidly changing environment of the pandemic has strained the process of model development and independent validation functions in risk management. This paper discusses selected challenges institutions may face in its model risk management process and addresses some of these challenges, leveraging its traditional infrastructure for managing all risks on an enterprise wide level.

Canadian Bank Dividends: Income Importance During and Beyond the Pandemic

This article explores the benefits of Canadian bank dividends, beginning with two areas that are often too little recognized. The first is the significance of Canadian bank dividends to sustaining household cash flow and liquidity, including their rising share of retail investor incomes, attractive absolute and relative yields, and dependability. The second is the crucial role of bank dividends in seniors’ incomes, including the structural trends boosting their importance in funding retirees’ spending needs.

The European Union Sustainable Finance Taxonomy: Implications for Canada

The European Union Sustainable Finance Taxonomy has arrived! What is it, and why should Canada care? One of the missing critical catalysts for kick-starting the sustainable finance industry has always been a comprehensive, science-based classification system creating a common language for sustainable investments. On March 9, 2020, the EU Sustainable Finance Taxonomy was released. It fills that critical void and is a genuine game-changer.

Financial Institution Operational Resilience: Pre and Post COVID-19

Once we move through this current crisis stage, we will have to deal with transition and, then, forge a sustainable path — a path that has been referred to as the “new normal”. This piece provides seven key guidelines for operational resilience on how to better position our financial institutions.

Bank Dividend Regulation: Impact of the COVID-19 Pandemic

With the world in the midst of the COVID-19 pandemic that has precipitated a severe global economic contraction, regulators and financial market professionals across the world have moved rapidly to prevent another financial crisis. As part of the regulatory initiatives intended to reduce the real economy impact and financial market strain, some regulators have been calling for coordinated, worldwide action to suspend all bank dividends for the foreseeable future.

Geopolitics in a Post-Pandemic World

COVID-19 sets a new precedent for the scale of a public health response and its vast economic consequences, but also poses longer-term geopolitical challenges and risks for Canadian financial services.

GRAFT: COVID-19 Implications

The world has been at the edge of a tipping point for over a year. Spread of viral disease was the risk that toppled the market, closed businesses and borders, made remote work a norm, and unfortunately has taken an unprecedented number of lives. The interrelationship of Global Risks and Trends outlines the path that led the world to its current state, and provides a framework for identifying the implications of COVID-19, and the path forward.

COVID-19 and 3rd Party Suppliers: Questions Risk Managers Should be Asking

Given the significant and increasing reliance on outsourcing and 3rd party supplier relationships in the financial services sector, risk managers should also be evaluating potential impacts on service levels from developments relating to the COVID-19 situation. This brief covers the questions to ask of your own institution, and your 3rd party suppliers.

Climate Risk and Sustainable Finance – Outlook for 2020

Recognition of the risks and opportunities associated with climate change reached new peaks across financial markets in 2019. But where to from here? From big picture global forces right down to expected milestones in the Canadian financial sector, here are five big trends that will shape the climate risk and sustainable finance space in 2020

Artificial Intelligence/Machine Learning: The CRO’s Agenda

Around the world, there is a steady increase in people searching for “Artificial Intelligence” and “Machine Learning” on the internet. With this increase in public interest, what is important for CROs and financial executives to understand from this?