Download or read book Modern Banking and OTC Derivatives Markets written by Mr.R. Sean Craig and published by INTERNATIONAL MONETARY FUND. This book was released on 2001-01-09 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This chapter provides an overview of market practices, market structure, and official supervision and regulation in financial markets. This paper also highlights the key features of modern banking and over the counter (OTC) derivatives markets that seem to be relevant for assessing their functioning, their implications for systemic financial risks in the international financial system, and areas where improvements in ensuring financial stability can be obtained. The paper also describes how OTC derivatives activities have transformed modern financial intermediation and discusses how internationally active financial institutions have become exposed to additional sources of instability because of their large and dynamic exposures to the counterparty (credit) risks embodied in their OTC derivatives activities. In order to rebalance private and official roles, it is essential first to clarify the limits to market discipline in OTC derivatives markets, before leaning more heavily on aspects of market discipline that seem to work well in these markets.
Download or read book Modern Banking and OTC Derivatives Markets written by International Monetary Fund and published by . This book was released on 2000 with total page 71 pages. Available in PDF, EPUB and Kindle. Book excerpt: Business practices, derivatives markets, regulation, financial innovations.
Download or read book Modern Financial Techniques Derivatives and Law written by Southern Methodist University. Institute of International Banking and Finance and published by Kluwer Law International B.V.. This book was released on 2000-08-08 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work examines both the UK and international regulation, as well as the case law and legislation affecting a wide spectrum of modern financial techniques. Within the scope of those financial techniques are the broad range of instruments, structures and contracts deployed by global financial markets in relation to corporate customers, sovereign entities and other public sector bodies. The essays in this collection are concerned with the nature of the modernity of financial products like derivatives, and the particularly acute challenge that they pose both to the control of financial markets by private law and by established means of regulation. Much of the book focuses on derivatives as exemplars of this broader context. The authors analyse practical and theoretical issues as diverse as credit derivatives, dematerialised securities, the ISDA EMU protocol, and the OTC derivatives market, as well as the regulation of financial products, the economics of financial techniques, and the international regulatory framework. They examine issues of private law, including the legal implications of immobilisation and dematerialisation in collateral transactions, seller liability in credit derivatives markets and fraud. The essays examine the benefits and shortcomings of various legal mechanisms and methods of financial regulation, and suggest new approaches to the questions facing the law of international finance. The essays in this book arose out of the W.G. Hart workshop on Transnational Corporate Finance and the Challenge to the Law held at the Institute of Advanced Legal Studies in London in 1998.
Download or read book OTC Markets in Derivative Instruments written by Nick Cavalla and published by Springer. This book was released on 2016-07-27 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: To date, most academic and practical texts have concentrated on the exchange-traded markets and focused on the nature and price characteristics of the various listed instruments. By contrast, OTC Markets in Derivative Instruments deals in detail with the complexities of the over-the-counter markets - extending a description of the core products to a discussion of real world applications and risks. Regulatory, accounting and tax issues are also covered. Contributors include Bankers Trust, BZW, GNI, Goldman Sachs, J.P. Morgan, Natwest Futures, Midland Montagu and Mitsubishi.
Download or read book Reform of the Over the counter Derivative Market written by United States. Congress. House. Committee on Financial Services and published by . This book was released on 2010 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Derivatives Revolution written by Raffaele Scalcione and published by Kluwer Law International B.V.. This book was released on 2011-01-01 with total page 458 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is now widely recognized that an uncontrolled "derivatives revolution" triggered one of the most spectacular worst-case scenarios of modern times. This book - the most cogent legal analysis of the subject yet to appear in any language - lays bare the core role played by the failure to adequately regulate derivatives in the financial crisis of recent years. The author's insistence that derivatives must be viewed not as profit-seeking investments but as risk management tools - and his well-grounded prescriptions to ensure that they are regulated in that way - sheds clear light on the best way for companies, financial institutions, and hedge funds to move forward in their use of these useful but highly hazardous instruments. This book clearly shows how such elements as the following fit into the legal analysis of derivatives, and how proper regulation will preserve their usefulness and economic value: ; derivatives allow for the most efficient and cost-effective risk fractioning, hence risk taking, techniques ever conceived; derivatives allow for all measurable and identifiable risks that may exist in modern finance; the ability to isolate risks and insure against risk exposures is the key to the very survival of modern financial markets; risk buyers effectively take on financial exposure to various types of risk while hedgers unload unwanted exposures; derivatives allow domestic investors to acquire exposure to foreign markets without the necessity of dealing with foreign laws, foreign investments, currency exchange, or foreign fiscal regimes; derivatives increase social welfare by making it easier and less expensive to carry out many types of financial transactions; derivatives allow governments to insulate, manage, hedge or concentrate risks deriving from financial, meteorological, and even geopolitical exposure; and derivatives allow radical changes to financial and risk structure to be performed silently and rapidly. To the question: how do we ensure that a company trading derivatives is regulated effectively? this work offers a clear and convincing answer. The author's detailed recommendations for regulatory and corporate governance measures are designed to prevent excessive risk taking, the emergence of rogue traders, and ultimately the emergence of another systemic disturbance caused by chains of derivatives-related losses.
Download or read book Reducing Risks and Improving Oversight in the OTC Credit Derivatives Market written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Securities, Insurance, and Investment and published by . This book was released on 2010 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Regulation and Supervision of the OTC Derivatives Market written by Ligia Catherine Arias-Barrera and published by Routledge. This book was released on 2018-05-11 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: The over-the-counter (OTC) derivatives market has captured the attention of regulators after the Global Financial Crisis due to the risk it poses to financial stability. Under the post-crisis regulatory reform the concentration of business, and risks, among a few major players is changed by the concentration of a large portion of transactions in the new market infrastructures, the Central Counterparties (CCPs). This book, for the first time, analyses the regulatory response of the United Kingdom and the United States, the two largest centres of OTC derivatives transactions, and highlights their shortcomings. The book uses a normative risk-based approach to regulation as a methodological lens to analyse the UK regime of CCPs in the OTC derivatives market. It specifically focuses on prudential supervision and conduct of business rules governing OTC derivatives transactions and the move towards enhancing the use of central clearing. The resulting analysis, from a normative risk based approach, suggests that the UK regime for CCPs does not fulfil what would be expected if a coherent risk based approach was taken. Our comments on the Dodd-Frank Act highlight that the incoherent adoption of risk-based approach to regulation affects the effectiveness of the US regime for CCPs. Such a regime does not follow the pace of events of ‘innovation risk’; in particular, the foreseeable changes FinTech will bring to the OTCDM and central clearing services. The second inadequacy of the US regime concerns the dual regulatory structure of the CFTC and the SEC, and the inadequate adoption of different and not well-coordinated regulatory strategies. We also analyse the cross-border implications of the US regime for non-US CCPs that provide clearing services to US market participants. Finally, we study the negative effects of the absence of a clearly defined resolution regime for CCPs.
Download or read book The Effective Regulation of the Over the counter Derivatives Market written by United States. Congress. House. Committee on Financial Services. Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises and published by . This book was released on 2009 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Counterparty Risk in the Over The Counter Derivatives Market written by Miguel A. Segoviano Basurto and published by INTERNATIONAL MONETARY FUND. This book was released on 2008-11-01 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial market turmoil of recent months has highlighted the importance of counterparty risk. Here, we discuss counterparty risk that may stem from the OTC derivatives markets and attempt to assess the scope of potential cascade effects. This risk is measured by losses to the financial system that may result via the OTC derivative contracts from the default of one or more banks or primary broker-dealers. We then stress the importance of "netting" within the OTC derivative contracts. Our methodology shows that, even using data from before the worsening of the crisis in late Summer 2008, the potential cascade effects could be very substantial. We summarize our results in the context of the stability of the banking system and provide some policy measures that could be usefully considered by the regulators in their discussions of current issues.
Download or read book Derivatives Demystified written by Andrew M. Chisholm and published by John Wiley & Sons. This book was released on 2011-09-19 with total page 293 pages. Available in PDF, EPUB and Kindle. Book excerpt: Derivatives are everywhere in the modern world and it is important for everyone in banking, investment and finance to have a good understanding of the subject. Derivatives Demystified provides a step-by-step guide to the subject, enabling the reader to have a solid, working understanding of key derivative products. Adopting a highly accessible approach, the author explains derivative products in straightforward terms and without the complex mathematics that underlie the subject, focusing on practical applications, case studies and examples of how the products are used to solve real-world problems. Derivatives Demystified follows a sequence that is designed to show that, although there are many applications of derivatives, there are only a small number of basic building blocks, namely forwards and futures, swaps and options. The book shows how each building block is applied to different markets and to the solution of various risk management and trading problems. This new edition will be fully revised to reflect the many changes the derivatives markets have seen over the last three years. New material will include a comprehensive history of derivatives, leading up to their use and abuse in the current credit crisis. It will also feature new chapters on regulation and control of derivatives, commodity derivatives, credit derivatives and structured products and new derivative markets including inflation linked and insurance linked products. Derivatives Demystified is essential reading for everyone who operates in the financial markets or within the corporate environment who requires a good understanding of these important financial instruments.
Download or read book The Financial Courts written by Jo Braithwaite and published by Cambridge University Press. This book was released on 2021-01-07 with total page 415 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explains the legal implications of internationalisation, standardisation and diversification in modern derivatives markets, demonstrating the key role of national courts.
Download or read book OTC Derivatives Bilateral Trading and Central Clearing written by David Murphy and published by Springer. This book was released on 2013-08-07 with total page 315 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the credit crisis, supervisors enacted a range of financial reforms. In particular, they radically changed the nature of the OTC derivatives market via a number of measures, notably mandatory central clearing. This book discusses the market before the crisis, explains what central clearing is, and outlines the consequences of the new rules.
Download or read book Applications in Finance Investments and Banking written by Diem Ho and published by Springer Science & Business Media. This book was released on 2013-04-17 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt: Technological, economic, and regulatory changes are some of the driving forces in the modern world of finance. For instance, financial markets now trade twenty-four hours a day and securities are increasingly being traded via real-time computer-based systems in contrast to trading floor-based systems. Equally important, new security forms and pricing models are coming into existence in response to changes in domestic and international regulatory action. Accounting and risk management systems now enable financial and investment firms to manage risk more efficiently while meeting regulatory concerns. The challenge for academics and practitioners alike is how to keep themselves, and others, current with these changing markets, as well as the technology and current investment and risk management tools. Applications in Finance, Investments, and Banking offers presentations by twelve leading investment professionals and academics on a wide range of finance, investment and banking issues. Chapters include analysis of the basic foundations of financial analysis, as well as current approaches to managing risk. Presentations also include reviews of the means of measuring the volatility of the underlying return process and how investment performance measurement can be used to better understand the benefits of active management. Finally, articles also present advances in the pricing of the new financial assets (e.g., swaps), as well as the understanding of the factors (e.g., earnings estimates) affecting pricing of the traditional assets (e.g., stocks). Applications in Finance, Investments, and Banking provides beneficial information to the understanding of both traditional and modern approaches of financial and investment management.
Download or read book Derivatives Regulation and Banking written by Barry Schachter and published by North-Holland. This book was released on 1997 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hardbound. This volume provides high quality academic research on the ongoing, and sometimes heated, public policy debate over the benefits of bank derivatives and trading activities. This debate is centered on the potential adverse systemic effects of these activities. To date, relatively little of what is known of the economic causes and consequences of these activities is the result of scientific scrutiny. Firstly, the volume documents the trends in trading activities and derivatives usage. Secondly, this book discusses the economic motivation for, and economic consequences of banks' derivatives and trading activities. Thirdly, the regulatory options and their potential consequences are evaluated. Recommendations for a reasoned supervisory response, based on the analyses in this book, conclude the volume.
Download or read book Modern Banking and OTC Derivates Markets written by and published by . This book was released on 2000 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Modern Financial Intermediaries and Markets written by Nasser Arshadi and published by . This book was released on 1997 with total page 540 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines firms, intermediaries, financial market instruments, and financial risk management.