Physical Sciences and Mathematics Commons^™

Using Etf Data To Monitor Systemic Risk, Melissa A. Siemer, Brett Amidan

STAR Program Research Presentations

In 2010, President Obama signed The Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires financially based government agencies and 35 major US banks to monitor systemic risk. This was in response to the recent near financial collapse due to major mistakes made by organizations generally considered "too big to fail". Systemic risk is the risk of the collapse of an entire financial system or market. It refers to the risks imposed by interdependencies in a system or market, where the failure of a single entity or cluster of entities can cause a cascading failure. In April 2011, the …