Derivatives

Fukushima and Derivatives Meltdowns

Moreover, the issuance and trading of derivatives ought to be at least as strictly regulated as that of stocks. Regulators should insist that traded derivatives are homogenous, standardized, and transparent.

An Assistant dialog to simplify calculating derivatives of expressions

But for derivatives, the analogous efforts are misdirected and won t save us from the financial fire next time. We are rebuilding derivatives and related financial structures atop the same, still active faults.

You call them stock, or stock options, derivatives, mortgage backed securities.

This was especially true of over the counter markets for foreign currency, securities, derivatives and repurchase agreements.

You can figure it out by looking at the difference and higher derivatives if you wanted to.

It was suggested that developing country Governments could hedge their budget revenue's exposure to commodity price risk by rolling over derivatives instruments available on exchanges and over the counter markets.

It's not only because we like to drink lots of it, and its marvelous derivatives, beer, wine, etc.

However, as they are securities, futures, like other derivatives, can be issued and traded in their own right and take on a life of their own which may become divorced from the underlying international trade and investment flows they were initially established to serve.

(c) Specific chemical derivatives of ATS precursors (e.g. esters) which could be converted into controlled precursors.

Aspiring derivatives traders certainly will be more confident of their career prospects. And other parts of the economy that provide services to the financial sector Porsche dealers and strip clubs, for example will be similarly encouraged.

To reduce the risk of runs in derivatives markets, regulators around the world are poised to require that derivatives trades be carried out through clearinghouses or exchanges. The clearinghouses will have many advantages, but not as many as regulators might think.

A brightly colored orchid enlivens my study, and, through the window, I catch a glimpse of my green garden. In short, my life like everyone s is enabled, enriched, and extended by a wide variety of plants and their derivatives.

If big banks have become too complex to regulate, then a workable Volcker Rule is the best way to start simplifying them. And, if the problem is systemically risky derivatives trading in banks and elsewhere, then the priority given to derivatives traders over nearly every creditor ought to be curtailed.

The regulators are focusing on an important feature of derivatives contracts that allows the derivatives industry to close out their dealings abruptly with a financially distressed entity, thereby making the institution incapable of recovering. Other creditors typically cannot do that in a US bankruptcy, for example, they must first wait for a court to decide whether the debtor company can be restructured.

Worse still, because derivatives and repo investors jump to the head of the repayment line in so many ways, they have less incentive to foster market discipline by closely monitoring their counterparties solvency and carefully rationing their exposure to any single counterparty. They typically get repaid, regardless.

Article 18 of the Act prohibits introduction into Jordanian territory of any radioactive derivatives, such as radioactive waste or residue, or their use, processing, transport, storage, licensing or burial in that territory.

Women make a contribution of 62 per cent to the marketing of milk and its various forms of processed or raw derivatives.

Fullerenes and their derivatives have not been commercially exploited as yet, but exciting research results reported over the last four years suggest that important applications for these materials in products and devices will occur within the next decade. Structural ceramics

The largest, most sophisticated banks have become expert at remaining one step ahead of regulators constantly creating complex financial products and derivatives that skirt the letter of the rules. In these circumstances, more complicated regulations merely mean more billable hours for lawyers, more income for regulators switching sides, and more profits for derivatives traders.

Free, non transferable put options could be given to farmers to provide them with price certainty, while in turn Governments should hedge their exposure by selling futures or using over the counter derivatives contracts.

Or the deposits can be investments in D.E. Shaw s funds and the loans can be the complex derivatives that make up D.E. Shaw s portfolio.

UNDCP continued its research and development of colour tests for amphetamine derivatives, the chemical components of khat (Catha edulis), for possible inclusion in drug identification kits.

PARIS In the early phases of the financial crisis, it was fashionable to argue that the United States system of regulation needed a fundamental structural overhaul. Differences of opinion between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) had obstructed effective oversight of investment banks and derivatives trading (only the US believes that it makes sense to regulate securities and derivatives separately).

Even back in the 1990 s, regulators would privately complain of the difficulty of retaining any staff capable of understanding the rapidly evolving derivatives market. Research assistants with one year of experience working on derivatives issues would get bid away by the private sector at salaries five times what the government could pay.

But an important disadvantage of derivatives is their short maturity. A West African country with newly discovered oil reserves needs to finance exploration, drilling, and pipeline construction, which means that it needs to hedge at a time horizon of 10 20 years, not 90 days.

In July 1996, the Governors of the central banks of the Group of Ten member countries approved a framework for the collection of derivatives market data on a regular basis. See Proposals for improving global derivatives market statistics , Basle, July 1996. The framework is available on the BIS Web site, www.bis.org, as ECSC No. 6.

And banks remain non transparent, and thus at risk. We still don t know the full extent of linkages among financial institutions, including those arising from non transparent derivatives and credit default swaps.

The tests were supposed to reveal the true conditions of banks saddled with unaudited toxic assets in housing loans and financial derivatives. The reasoning behind the tests seemed unimpeachable.

America s economy had been supercharged by excessive leveraging now comes the painful process of deleveraging. Excessive leveraging, combined with bad lending and risky derivatives, has caused credit markets to freeze.

For example, in the case of the Iraqi sanctions, the relevant committee authorized, on an exceptional basis, Jordan s request for resumption of imports of oil and oil derivatives from Iraq.

You know, I'm doing some research in my lab with a video camera, and within the first week, a million people had seen this work, and literally within days, engineers, teachers and students from around the world, were already posting their own YouTube videos of them using my system or derivatives of this work.

We should be examining how to make derivatives and repo investors assume the full risk of their decisions when dealing with systemically vital financial institutions. Instead, we survived the financial tsunami of 2008, only to rebuild in the same place, on the main financial fault lines, using the same flawed design.

Regulators around the world have worked hard to make the financial system safer. With the recent missive to the derivatives industry, they are now starting to deal with bankruptcy and well they should.

CAMBRIDGE Financial commentators have likened Japan s earthquake, tsunami, and nuclear catastrophe to derivatives role in the 2008 financial meltdown. The resemblance is clear enough each activity yields big benefits and carries a tiny but explosive risk.

And being naive about the whole field, I kind of thought, Oh, you have cell death in Alzheimer's which is causing the memory deficit, and then you have this compound purine derivatives that are promoting cell growth.

GM crops also have significant economic benefits. Higher yields and lower production costs have reduced global commodity prices (corn, soybeans, and derivatives), resulting in higher farm income, enhanced supplies of food and feed products, and more readily available high quality calories.

At this writing, Yam is widely criticized in Hong Kong for failing to protect small investors against the dishonest sales tactics of a number of banks in their selling of toxic Lehman Brothers derivatives disguised as bonds. He denies any responsibility, even though the HKMA oversees all financial institutions.

For the Fukushima nuclear power plant, a 1,000 year flood and ordinarily innocuous design defects combined to deprive the reactors of circulating water coolant and cause serious radiation leaks. In financial markets, an unexpected collapse in real estate securities and design defects in the derivatives and repo markets combined to damage core financial institutions ability make good on their payment obligations.

The derivatives market is exempt from rules that stop creditors from grabbing collateral and terminating their contracts when the debtor files for bankruptcy. They are also exempt from rules that impede better informed creditors from seizing assets and running off just before a bankruptcy, even if their positions are needed, say, to sell a portfolio intact to another business, and even if the fleeing creditor would eventually be paid in full, with interest.

As a result, Greece would be forced to impose capital controls. Some contracts denominated in euros would be subject to Greek law, some to European law, and others for example, derivatives contracts to British or US law.

Through all of this, governments have strengthened bank regulation only slightly, leaving key issues like liquidity creation, exposure to derivatives, and tax avoidance largely unaddressed. Today, 98 of the 750 trillion in global liquidity is in speculative markets.

The US lacks investment in infrastructure and has excess investment in financial derivatives the result of opaque leverage from over consumption. China suffers from under consumption and possible over investment, and needs to strike a balance between the state owned sector and private enterprise.