Complexity, big data and financial stability
Abstract
Financial stability analysis and policy should concentrate on accurate price discovery for
complex instruments, realistic financial information generation processes, and system-wide risk
materializing within complex financial networks. To this end, complexity analysis can make a useful
contribution. The effectiveness of these approaches rests crucially on the quality and standardization
of big data that today characterized financial activity throughout the globe. Considerable progress is
made over the past year in the development of a key element of such standardization—the global
legal entity identifier system. It aims to uniquely identify parties to financial transactions across the
globe. While this is a necessary and key first step, it is only one step towards a strong, flexible and
adaptable global data infrastructure conducive to financial stability policy