The existing economic and financial literature has documented the importance of informed trades, volatility spreads and the stock market response to key financial events that can threaten domestic and global financial stability. After the Global Financial Crisis (GFC), the Dodd–Frank Wall Street Reform and Consumer Protection Act (DFA) were enacted in the United States to enhance financial stability and respond to widespread calls for changes to the financial regulatory system. This federal law overhauled financial regulation and made changes affecting every part of the US financial services industry. As discussed by Bernal et al. (2014), companies other than banks can also have a critical impact on the whole economy. This entails the need of investigating the potential impact of unexplored sources of risk on the entire financial system. This special issue provides a substantial contribution in this direction.
Duygun, M., Miao, J., & Östberg, P. (2020). Monitoring market participants, externals and financial transactions in a global financial stability environment. Journal of Banking and Finance, 119, Article 105937. https://doi.org/10.1016/j.jbankfin.2020.105937