Randy Priem

Randy Priem is a finance professor at UBI Business School (Middlesex University London) and Antwerp Management School, where he teaches financial management, financial law, and FinTech courses. He is also a guest professor at the Katholieke Universiteit Leuven, where he obtained his PhD. In addition, he is the coordinator of the markets and post-trading unit at the Belgian Financial Services and Markets Authority (FSMA), where he supervises the Belgian trading venues, multilateral trading facilities, and central securities depositories. He is a member of various standing committees and working groups at the European Securities and Markets Authority (ESMA), such as the markets standing committee, the data standing committee, the European supervisory policy committee, the post-trading working group, the CCP policy committee, and the DLT working group. He further represents the FSMA at the Steering Group of the Committee on Payments and Market Infrastructures (CPMI) – International Organization of Securities Commissions (IOSCO) and is a member of the IOSCO CDS task force and the IOSCO benchmarks task force. He is a member of six EMIR colleges of central counterparties, four CCP resolution colleges, and also represents the FSMA at the Target2-Securities cooperative oversight college. He often represents Belgium as a national expert at the European Council when new legislation is drafted and was a member of the Belgian presidency when the European Market Infrastructure Regulation (EMIR) was revised.

Adopting Credit-Sensitive Rates Could Pose Great Risks to Financial Markets

The financial market has moved from LIBOR to alternative interest-rate benchmarks, such as SOFR. Credit-sensitive rates, which are now becoming increasingly popular, carry greater risks than SOFR and other “risk-free rates” and must be used with great care. If not, United States legislators might need to step in to further stimulate the use of safter benchmark alternatives, writes Randy Priem.

Determination Committees Deciding on Credit Event Decisions Should Bolster Independence

Randy Priem reviews the current discussions about fortifying the independence of determination committees deciding whether a credit event took place for single-name credit default swaps. He offers several possible strategies.

Mandatory Central Clearing Is Not the Solution to Risk From Single-Name Credit Default Swaps

Single-name credit default swaps help investors manage risk, but the 2023 financial crisis showed how these opaque derivatives can suddenly throw financial markets into turmoil. Randy Priem argues that mandatory central clearing, which some authorities have suggested as a solution to managing this risk, is not the holy grail solution they believe it to be.

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