Nordic Fixed Income Derivatives are traded and cleared in a unique market structure. Trades in fixed income derivatives are reached through bilateral negotiations between buyers and sellers, and reported to NASDAQ OMX Derivatives Markets for central counterparty clearing. NASDAQ OMX Derivatives Markets becomes the counterparty to both the buyer and seller, i.e. central counterparty (CCP) clearing. This structure combines the advantages of a cleared market, with the flexibility and the secured liquidity of a market maker driven market....
This document presents the operational
framework chosen by the Eurosystem* for the
single monetary policy in the euro area. The
document, which forms part of the Eurosystem’s
legal framework for monetary policy instruments
and procedures, is intended to serve as the
“General Documentation” on the monetary
policy instruments and procedures of the
Eurosystem, and is aimed, in particular, at
providing counterparties with the information
they need in relation to the Eurosystem’s
monetary policy framework....
Approved products on their own are not always
enough for successful exporting.
A good knowledge of the relevant standards
and the special characteristics of the market for
the application must be taken into account in
addition to the approved products themselves.
A check list may help to clarify important
questions and take them into account at the
quotation stage. After a system is completed,
any special requirements that were not taken
into account in the engineering stage may
require a high level of cost and time for their
The financial markets touch all of our lives. If you didn’t believe that in
years past, you surely do now after the tumultuous events of the late
The workings and integrity of those markets are vital to our increasingly
global and interconnected economies.
If you’ve chosen a career that involves working in the securities industry,
you have a front-row seat in a dynamic and sometimes unpredictable field.
George (Tres) Arnett and I met many years ago at Yale University where
we both studied economics.
The standards in this report harmonise and, where appropriate, strengthen the
existing international standards for payment systems (PS) that are systemically important,
central securities depositories (CSDs), securities settlement systems (SSSs), and central
counterparties (CCPs). The revised standards also incorporate additional guidance for over-
the-counter (OTC) derivatives CCPs and trade repositories (TRs).
In November 2004, building upon the recommendations established in the RSSS,
the CPSS and the Technical Committee of IOSCO published the Recommendations for
central counterparties (RCCP). The RCCP provided 15 recommendations that addressed the
major types of risks faced by CCPs. A methodology for assessing a CCP’s observance of
each recommendation was included in the report.
These consistencies have made it possible for accrediting groups to compare programs at
multiple institutions. They make the handling of transfer credit from institution to
institution reasonably systematic. They make it possible that institutions can issue
“transcripts that follow commonly accepted practices and accurately reflect a student’s
academic experience" as required by Criterion 5 of the North Central Association’s
Criteria for Accreditation (Adopted February 2001).
In contrast to equity markets, the government and corporate bond markets have been held back by the
more restrictive regulatory framework. A number of reforms were introduced to the government bond
market in 1992 when the price of newly-introduced bonds was set by auction. But it was not until
2005—11 years after the equity market—that bond market became an electronic order limit market.
Several measures were implemented to minimize risks in equities trading and to create a national
market in stocks.
Until the 1990s, the main objective of the Italian banking regulation was to foster local de-
velopment and to ensure financial stability. In general, mergers between public banks were
not allowed; and for savings banks, there were strict authorization procedures for such
mergers. This system was quite successful in supporting and stimulating the growth of the
industrial sector, which was (and to a considerable extent still is) characterized by a large
number of small and medium enterprises.
But at the beginning of the 1990s, the system started to show its weaknesses.
What can we learn from the UniCredit experience? First, it is remarkable that the most suc-
cessful Italian bank has developed almost exclusively from public banks, with the exception
of Credito Romagnolo. Therefore, it cannot be considered as an example of a successful
merger across different pillars. Second, the geographical spread of UniCredit's activities
within Italy is noteworthy. Apart from Credito Italiano, which also operated in some South-
ern regions, all banks merged into UniCredit operated in the wealthy north of Italy.
Interest rate swap terms typically are set so that the pres
ent value of the counterparty payments is at least equal to
the present value of the payments to be received. Present
value is a way of comparing the value of cash flows now
with the value of cash flows in the future. A dollar today is
worth more than a dollar in the future because cash flows
available today can be invested and grown.
The basic premise to an interest rate swap is that the coun
terparty choosing to pay the fixed rate and the counterpar
ty choosing to pay the floating...
Governments everywhere responded to the panic by pumping more equity into banks,
greatly expanding the ambit of their deposit insurance, and opening up various central bank
discount windows for distress borrowers. This gigantic effort seems to have reduced
counterparty party risk, the fear of bank failure, in interbank trading. Figure 1 shows the one-
month LIBOR rate coming down close to the Fed funds rate, now near zero, by mid 2009.