A conference organized by the Federal Reserve Bank of Atlanta and the International Association of Financial Engineers. This conference brought together academics, practitoners, and policymakers to discuss systemic risk arising from the interactions of modern financial institutions and financial markets. The conference featured four sessions covering models of financial system risk, models of strategic liquidity provision, the role of certain types of financial institutions in financial system risk, and the potential role of financial innovation and mark-to-market accounting in contributing to financial instability.