com/locate/enpol The impact of the new wave of financial regulation for European energy markets Luuk Nijman n School of Public Policy‚ University College London‚ London‚ WC1H 9QU‚ UK H I G H L I G H T S c c c c c The European Commission has put forward a set of financial legislation to stabilize both financial markets and energy prices. This article assesses the impact of this financial regulation on energy markets. It shows that the theoretical and empirical effects of key elements in this legislation
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before becoming too large. After a number of huge derivative losses in the mid-nineties‚ a lot of criticism was pointing at the derivative trading. For example‚ Orange County lost $1 billion in SWAPS contracts and went bankrupt‚ Barings Bank shut down business after a £880 million loss caused by futures trading in Singapore. In this essay‚ I will look at both the upsides and downsides from the use of derivative instruments‚ mainly focusing on exchange traded derivatives. Different user groups such
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PRACTICE_FINAL EXAM PORTFOLIO MANAGEMENT Winter 2013 CHAPTER 19—BOND PORTFOLIO MANAGEMENT STRATEGIES MULTIPLE CHOICE 1. Which of the following is a passive bond portfolio strategy? a. Indexing b. Buy-and-Hold c. Classical immunization d. Choices a and b e. None of the above ANS: D PTS: 1 OBJ: Multiple Choice 3. Which of the following is a matched funding technique? a. Classical immunization b. Contingent immunization c. Bond swaps d. Valuation analysis e. Interest rate anticipation ANS: A PTS:
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market deregulation‚ expansion in global trade‚ and progressing technological developments led to a consequent increase in demand for risk management products. This demand is reflected in the development of financial derivatives from the uniform futures and options products of the 1970s to the ample spectrum of over-the-counter (OTC) products accessible and sells today. Numerous products and instruments are frequently express as derivatives by the monetary press and market participants. In this management
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contribute to the total performance of the fund. A single-strategy fund concentrates the whole portfolio on one strategy. Amaranth was long natural gas futures. They enjoyed huge profits from natural gas futures and option trades in 2005 and early 2006. Brian Hunter used borrowed money to double-down on his bets. Buying more futures contracts of this same kind supported their price by increasing demand‚ which then increased the price gains. It seemed that Brian Hunter was acting on his own entity
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REVIEW QUESTIONS 1. Why did Nick Leeson sell numerous short straddles for each long futures contract he bought? When Nick Leeson was being promoted on the Singapore branch of the Barings bank‚ the strategy of the bank was to reduce the risk exposure by using a combination of one short straddle (combination of put / call) and for one long future. Since Nick Leeson used to be a specialist on Future contracts on Nikkei 225 and Japanese 10 years bond and was sure this market would arise. So he
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A PROJECT REPORT ON “GOLD ETFs IN INDIAN MARKET” In Fulfillment of the Requirements For Post-Graduation Diploma in Management (PGDM) (2012-2014) SUBMITTED BY: KASAM RAJESH Roll no: 123412 VIGNANA JYOTHI INSTITUTE OF MANAGEMENT BACHUPALLY‚ HYDERABAD. A PROJECT REPORT ON “GOLD ETFs IN INDIAN MARKET” In Fulfillment of the Requirements For Post-Graduation Diploma in Management (PGDM) (2012-2014) UNDER
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Leading Commodity Markets of India Volumes in commodity Derivatives Worldwide Commodity Futures Trading in India Introduction Benefits to Industry From Futures Trading Benefits to Exchange Member Why Commodity Futures? What makes commodity trading attractive? NCDEXs Trading System Gold Introduction What makes Gold special Market characteristics Demand & Supply Indian Gold Jewellery Market MCX contract specifications of gold FAQ on Gold Gold Terminology Conclusion Bibliography
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Case summary – Enron Corporation’s Weather Derivatives Steve Haik‚ Dan Sleker and Bas van Bellegem – March 2003 Background In October Mary Watts‚ CFO of Pacific Northwest Electric (PNW) reviewed the forward plan for PNW’s 200-2001 season. PNW’s has been experiencing nearly no EPS growth since 1995 due to deregulation and warmer-than-average winter climate. The stock price had suffered accordingly‚ but there maybe a way to hedge the weather risk via a new “weather derivative” being proposed by
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represents the difference in yield between issues of different terms to maturity but same risks. a. T b. F 2. The coupon rate is the interest rate that equates the current purchase price of the bond with the economic value of all anticipated future interest and principal payments. a. T b. F 3. Zero coupon bonds are sold at an original price that is a substantial premium from their face amount. a. T b. F 4. Municipal bonds are interest-bearing securities issued by local
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