Derivatives Trading and Its Impact on the Volatility of NSE, India
... derivatives reduce the risk by providing an additional channel to invest with lower trading cost and it facilitates the investors to extend their settlement through the future contracts. It provides extra liquidity in the stock market. In recent past, the volatility of stock returns has been a major ...
... derivatives reduce the risk by providing an additional channel to invest with lower trading cost and it facilitates the investors to extend their settlement through the future contracts. It provides extra liquidity in the stock market. In recent past, the volatility of stock returns has been a major ...
notes - University of Essex
... Panel (a) shows the payoff from a put option as a function of the underlying portfolio’s market value at the expiry date, T . (The portfolio is assumed to comprise a single asset, with price ST at T .) The dashed line in panel (b) shows the value of an uninsured portfolio, i.e. the payoff equals ST ...
... Panel (a) shows the payoff from a put option as a function of the underlying portfolio’s market value at the expiry date, T . (The portfolio is assumed to comprise a single asset, with price ST at T .) The dashed line in panel (b) shows the value of an uninsured portfolio, i.e. the payoff equals ST ...
“Too Big to Fail”?
... goods and create a balance between supply and demand and this job was done rather discreetly until the end of 2000s. However, throughout this decade, the sector of commodities gained impressive value and volume until the recession of 2007-2009, and even then, the market got rapidly back on its feet ...
... goods and create a balance between supply and demand and this job was done rather discreetly until the end of 2000s. However, throughout this decade, the sector of commodities gained impressive value and volume until the recession of 2007-2009, and even then, the market got rapidly back on its feet ...
COM SEC(2009)
... COM/2008/0602 final - COD 2008/0191 amending Directives 2006/48/EC and 2006/49/EC as regards banks affiliated to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management. Although it may vary significantly from one segment to another. The same c ...
... COM/2008/0602 final - COD 2008/0191 amending Directives 2006/48/EC and 2006/49/EC as regards banks affiliated to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management. Although it may vary significantly from one segment to another. The same c ...
Stocks Gain on Stimulus Optimism
... Stocks responded to the Federal Reserve’s minutes of its last FOMC meeting and chairman Ben Bernanke’s comments late Wednesday and soared. His remarks energised investors across the globe and sent US stock indexes to all-time highs. Bernanke said that the economy still needs "highly accommodative mo ...
... Stocks responded to the Federal Reserve’s minutes of its last FOMC meeting and chairman Ben Bernanke’s comments late Wednesday and soared. His remarks energised investors across the globe and sent US stock indexes to all-time highs. Bernanke said that the economy still needs "highly accommodative mo ...
managed futures and hedge funds: a match made in
... Under these assumptions, the basic return statistics for our four asset classes are shown in Table 1. The table shows that managed futures returns have a lower mean and a higher standard deviation than hedge fund returns. However, managed futures also exhibit positive instead of negative skewness an ...
... Under these assumptions, the basic return statistics for our four asset classes are shown in Table 1. The table shows that managed futures returns have a lower mean and a higher standard deviation than hedge fund returns. However, managed futures also exhibit positive instead of negative skewness an ...
Regulated Investment Companies and Commodity
... to satisfy any of these RIC tests can result in the payment of substantial penalty taxes to maintain its RIC status, or loss of RIC status entirely in a particular year, resulting in taxation at the fund level on all of the fund’s taxable income. Currently, the primary tax-related obstacle faced by ...
... to satisfy any of these RIC tests can result in the payment of substantial penalty taxes to maintain its RIC status, or loss of RIC status entirely in a particular year, resulting in taxation at the fund level on all of the fund’s taxable income. Currently, the primary tax-related obstacle faced by ...
Equity Trading by Institutional Investors: To Cross or Not
... The most important question in the academic literature on intermarket competition is whether competition between marketplaces induces efficient trading. The survey by Biais et al. (2005) divides the existing literature into two generations depending on the assumed nature of competition between deale ...
... The most important question in the academic literature on intermarket competition is whether competition between marketplaces induces efficient trading. The survey by Biais et al. (2005) divides the existing literature into two generations depending on the assumed nature of competition between deale ...
Technical Analysis in Financial Markets Griffioen, GAW
... As long as financial markets have existed, people have tried to forecast them, in the hope that good forecasts would bring them great fortunes. In financial practice it is not the question whether it is possible to forecast, but how the future path of a financial time series can be forecasted. In ac ...
... As long as financial markets have existed, people have tried to forecast them, in the hope that good forecasts would bring them great fortunes. In financial practice it is not the question whether it is possible to forecast, but how the future path of a financial time series can be forecasted. In ac ...
Reporting of Derivative Instruments - NAIC I-Site
... An option is an agreement giving the buyer the right to buy or receive, sell or deliver, enter into, extend or terminate, or effect a cash settlement based on the actual or expected price level, performance or value of, one or more underlying interest. Underlying interest is the asset(s), liability( ...
... An option is an agreement giving the buyer the right to buy or receive, sell or deliver, enter into, extend or terminate, or effect a cash settlement based on the actual or expected price level, performance or value of, one or more underlying interest. Underlying interest is the asset(s), liability( ...
TOPIC 1: WHAT IS A SHARE
... contract is known as the 'Market Contract'. In the novation process, the Market Contract is replaced by two separate and unrelated contracts: ...
... contract is known as the 'Market Contract'. In the novation process, the Market Contract is replaced by two separate and unrelated contracts: ...
Derivatives And Risk Management In The Petroleum, Natural Gas
... • A description of energy risk management tools • A description of exchanges and mechanisms for trading energy contracts ...
... • A description of energy risk management tools • A description of exchanges and mechanisms for trading energy contracts ...
EMIR and MiFID2/MiFIR: Update on recognition procedures for non
... ESMA has stated in its Q&A that a market cannot be considered equivalent for the purposes of EMIR unless it is included on a list published by the Commission, but the Commission has not yet listed any non-EU markets and, as a result, market participants are required to treat all non-EU ETD as “OTC ...
... ESMA has stated in its Q&A that a market cannot be considered equivalent for the purposes of EMIR unless it is included on a list published by the Commission, but the Commission has not yet listed any non-EU markets and, as a result, market participants are required to treat all non-EU ETD as “OTC ...
How Do Canadian Banks That Deal in Foreign Exchange Hedge
... spot and forward FX markets are decentralized multiple-dealership markets. There is no physical location, or exchange, where dealing banks meet. Two important characteristics distinguish FX trading from trading in other markets: trades between dealing banks account for most of the trading volume in ...
... spot and forward FX markets are decentralized multiple-dealership markets. There is no physical location, or exchange, where dealing banks meet. Two important characteristics distinguish FX trading from trading in other markets: trades between dealing banks account for most of the trading volume in ...
The Impact of Derivatives on Cash Markets: What Have We
... of the extent to which speculative trading in general influences market prices. Accordingly, we will begin by reviewing the theoretical literature on speculation and price stability. Much of the early literature in this area focused on the role of speculators in smoothing out seasonal price fluctuat ...
... of the extent to which speculative trading in general influences market prices. Accordingly, we will begin by reviewing the theoretical literature on speculation and price stability. Much of the early literature in this area focused on the role of speculators in smoothing out seasonal price fluctuat ...
Prestigious Stock Exchanges - Federal Reserve Bank of New York
... marginals will be (trivially) sufficient for assessing global dominance. The exercise, however, is significantly more difficult as the matrix flows become even slightly more complex. Imagine, for instance, the case of two markets with significantly higher column marginals than any other market and, ...
... marginals will be (trivially) sufficient for assessing global dominance. The exercise, however, is significantly more difficult as the matrix flows become even slightly more complex. Imagine, for instance, the case of two markets with significantly higher column marginals than any other market and, ...
Market Segmentation, Information Asymmetry
... markets were segmented into local and foreign investors, respectively.2 These studies have consistently shown that when the markets were segmented the B-shares traded at a significant discount to the A shares.3 The differences in pricing in the A- and B- markets have been explained by a range of fac ...
... markets were segmented into local and foreign investors, respectively.2 These studies have consistently shown that when the markets were segmented the B-shares traded at a significant discount to the A shares.3 The differences in pricing in the A- and B- markets have been explained by a range of fac ...
ETF`s – Top 5 portfolio strategy considerations
... explosion in the use of exchange-traded products and, more specifically, exchange-traded funds (ETFs) by both institutional and retail investors. Investors have been attracted to the relatively low cost of ETFs as well as their ability to enable time-efficient diversification and their simple, trans ...
... explosion in the use of exchange-traded products and, more specifically, exchange-traded funds (ETFs) by both institutional and retail investors. Investors have been attracted to the relatively low cost of ETFs as well as their ability to enable time-efficient diversification and their simple, trans ...
Euromoney Institutional Investor PLC acquires Total Derivatives
... Euromoney has acquired a 67% interest in Total Derivatives from its co-founder and CEO, Ronan O’Neill, and from employee minority shareholders and financial investors. The cash consideration paid on completion of the acquisition was £6.7 million. In addition, the management team will stay with the b ...
... Euromoney has acquired a 67% interest in Total Derivatives from its co-founder and CEO, Ronan O’Neill, and from employee minority shareholders and financial investors. The cash consideration paid on completion of the acquisition was £6.7 million. In addition, the management team will stay with the b ...
Profitability of Pairs Trading Strategy
... 20 percent (later raised to 40 percent) of the total equity. The shares that the company made available to all investors (including Finnish investors) were labeled as unrestricted. Those that only available to Finnish investors were labeled as restricted stocks. Both instruments were traded and pric ...
... 20 percent (later raised to 40 percent) of the total equity. The shares that the company made available to all investors (including Finnish investors) were labeled as unrestricted. Those that only available to Finnish investors were labeled as restricted stocks. Both instruments were traded and pric ...
Commodity market
A 'commodity market' is a market that trades in primary rather than manufactured products. Soft commodities are agricultural products such as wheat, coffee, cocoa and sugar. Hard commodities are mined, such as gold and oil. Investors access about 50 major commodity markets worldwide with purely financial transactions increasingly outnumbering physical trades in which goods are delivered. Futures contracts are the oldest way of investing in commodities. Futures are secured by physical assets. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.A financial derivative is a financial instrument whose value is derived from a commodity termed an underlier. Derivatives are either exchange-traded or over-the-counter (OTC). An increasing number of derivatives are traded via clearing houses some with Central Counterparty Clearing, which provide clearing and settlement services on a futures exchange, as well as off-exchange in the OTC market.Derivatives such as futures contracts, Swaps (1970s-), Exchange-traded Commodities (ETC) (2003-), forward contracts have become the primary trading instruments in commodity markets. Futures are traded on regulated commodities exchanges. Over-the-counter (OTC) contracts are ""privately negotiated bilateral contracts entered into between the contracting parties directly"".Exchange-traded funds (ETFs) began to feature commodities in 2003. Gold ETFs are based on ""electronic gold"" that does not entail the ownership of physical bullion, with its added costs of insurance and storage in repositories such as the London bullion market. According to the World Gold Council, ETFs allow investors to be exposed to the gold market without the risk of price volatility associated with gold as a physical commodity.