Jonas E. Arias, Christopher Erceg, and Mathias Trabandt | This paper investigates the macroeconomic risks associated with undesirably low inflation using a medium-sized New Keynesian model. We consider different causes of persistently low inflation, including a downward shift in long-run inflation expectations, a fall in nominal wage growth, and a favorable supply-side shock. We show that the macroeconomic effects of persistently low inflation depend crucially on its underlying cause, as well as on the extent to which monetary policy is constrained by the zero lower bound. Finally, we discuss policy options to mitigate these effects.
The Macroeconomic Risks of Undesirably Low Inflation
↧
↧
Macroeconomic Dynamics Near the ZLB: A Tale of Two Countries
S. Boragan Aruoba, Pablo Cuba-Borda, and Frank Schorfheide | We compute a sunspot equilibrium in an estimated small-scale New Keynesian model with a zero lower bound (ZLB) constraint on nominal interest rates and a full set of stochastic fundamental shocks. In this equilibrium a sunspot shock can move the economy from a regime in which inflation is close to the central bank's target to a regime in which the central bank misses its target, inflation rates are negative, and interest rates are close to zero with high probability. A nonlinear filter is used to examine whether the U.S. in the aftermath of the Great Recession and Japan in the late 1990s transitioned to a deflation regime. The results are somewhat sensitive to the model specification, but on balance, the answer is affirmative for Japan and negative for the U.S.
↧
SEC And Law Enforcement Partners Crack Stock Promotion And Kickback Schemes
The Securities and Exchange Commission today announced fraud charges against 10 individuals involved in schemes to trick investors into buying shares of a particular company stock.
read more...↧
EBA Amends Historical Look-Back Approach (HLBA) Method For Calculating Additional Collateral Outflows
↧
The Saudi Stock Exchange (Tadawul) Announces The Amendment Of The Settlement Cycle Of Listed Securities In The Equity Market
The Saudi Stock Exchange (Tadawul) announces the regulatory approval of the Capital Market Authority to amend the settlement cycle of listed securities in the equity market to be within two subsequent working days of trade execution (T +2). This change will take place during the first half of 2017.
These substantial modifications will include the elimination of cash prefunding requirement by the exchange, activation of covered short selling with the ability to lend and barrow securities, enhanced custody controls and the introduction of proper delivery versus payment (DVP) and collateralization setup as per common and familiar standards and in line with Saudi laws.
The change is part of several initiatives to develop the Saudi Capital Market especially around the post trade infrastructure to be in line with international standards. It will enhance the depth of the market, allows greater effectiveness and efficiency of post trade processes and reduce the market systemic risk.
Tadawul will begin the market readiness procedures with the market participants and stakeholders in the coming few weeks which shall include more technical and awareness details.
↧
↧
EEX New Participant: J.P. Morgan Securities PLC
J.P. Morgan Securities PLC has been additionally admitted to exchange trading for Freight Financial Options.
↧
Saudi Arabia's Capital Market Authority Approves Amendments To The Registration Requirements For Qualified Foreign Financial Institutions, Change The Settlement Cycle For Securities Transactions And The Introduction Of Securities Lending And Covered Short-Selling
In its continuous efforts to improve the capital market environment, in accordance with the strategic objectives of fostering the development of the capital market and expanding the institutional investment base, the CMA on 15.06.2015 approved the rules for qualified foreign financial institutions in listed shares, allowing QFIs to invest directly in Saudi listed shares. These rules were implemented with the aim of raising the bar in relation to investing strategies, equity research and market valuations, and would expand and strengthen the growth of the Saudi capital market, and enhance the expertise of local institutions and investors, Thus providing stability of market prices and support growth.
Due to the gradual approach that the CMA has chosen to undertake in the liberalization of the capital market, the CMA board has approved amendments to the criteria and requirements, to register qualified foreign financial institutions which would include the following:
1- lowering the minimum value of the assets under management to be SAR 3,750,000,000, rather than SAR 18,750,000,000. Furthermore, The board has agreed the inclusion of new foreign financial institutions, including sovereign wealth funds, university endowments and others, as per CMA approval.
2- The elimination of investment limits as per sub paragraph (A/1), (A/2), (A/4) and (A/5) of article 21 of the qualified foreign investor regulations. In addition, the CMA has lower investment limitations on foreign investors in order to allow for higher holding percentage in listed companies as follows:
allowing foreign investors to own larger stakes in listed companies not reaching 10% of the shares outstanding of a single issuer for each investor.
All foreign investors jointly ( whether resident or non-resident ) to own no more than 49 % of the shares of any listed company on the market, unless company's bylaws or any other regulation provides for foreign ownership to be limited to a lower percentage .
The amended rules and its effective date will be published by the end of the first half of 2017.
In addition, the CMA and Saudi Stock Exchange (Tadawul) have continuously endeavored to align the market infrastructure development with the market regulatory environment, under international best practices. In this regard, the CMA has approved Saudi Stock Exchange (Tadawul) request for amending the transactions settlement cycle of listed shares from (T+0) to (T+2).This change is to take effect first half of 2017. Furthermore, the CMA board has approved the introduction of securities lending and covered short-selling as per the regulations to be issued before the end of the first half of 2017.
The CMA aims for these measures to provide greater stability to the overall capital market environment, through applying international best practices, incentivizing investors in an environment that supports the national economy.
↧
EEX New Participant: ED & F Man Capital Markets Limited
ED & F Man Capital Markets Limited has been admitted to exchange trading for Coal Futures USD, Freight Financial Futures and Freight Financial Options.
↧
Bats Welcomes REX Shares As New Issuer To The Bats ETF Marketplace - Two New REX ETFs Begin Trading Today - Ten Issuers Now Have ETFs Listed On The Bats ETF Marketplace
Bats Global Markets, Inc. (Bats: BATS), the #1 U.S. market for the trading of exchange-traded funds (ETFs), today welcomed REX Shares as a new issuer to The Bats ETF Marketplace with the launch of two new ETFs.
read more...↧
↧
First Independent Chinese Refiner Trades DME Oman
Shandong Chambroad Petrochemicals Co., has become the first independent Chinese refiner to trade Oman crude oil futures on the DME, the leading east of Suez energy exchange.
read more...↧
Dalian Commodity Exchange Makes Public Response To Regulatory Measures Taken Recently
On April 26, Dalian Commodity Exchange (DCE) issued another notice to further increase the trading fees of iron ore, coking coal, metallurgical coke and PP futures. A DCE spokesman said that the move is aimed at further intensifying supervision, resolutely curbing the tendency of over-speculation, effectively preventing risks and ensuring the safe and stable operation of the market.
read more...↧
Dubai Financial Market: Market Holiday - AlIsra Wa Al Miraj Holiday
In the occasion of AlIsra Wa Al Miraj Holiday, the market will be closed on Thursday, 05/05/2016 and will resume on Sunday, 08/05/2016
↧
Intercontinental Exchange Statement Regarding No Intention To Make An Offer For London Stock Exchange Group Plc (âLSEGâ)
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, provided the following statement.
read more...↧
↧
Intercontinental Exchange Reports Record First Quarter 2016 Adj. Diluted Eps Of $3.68, +20% Y/Y - $1.2b Revenues, Less Transaction-Based Expenses
Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses and provider of global data and listing services, today reported financial results for the first quarter of 2016. For the quarter ended March 31, 2016, consolidated net income attributable to ICE was $369 million on $1.2 billion of consolidated revenues less transaction-based expenses. On a GAAP basis, diluted earnings per share (EPS) in the first quarter were $3.08.
read more...↧
Bloombergâs OTC Electronic Trading Services Offer Direct Connectivity To Eurex Clearing
Eurex Clearing, Europe’s leading clearing house and part of Deutsche Börse Group, has connected Bloomberg as an approved trade source for EurexOTC Clear, the Interest Rate Swaps Clearing offering of Deutsche Börse.
read more...↧
Intercontinental Exchange Announces Second Quarter Dividend Of $0.85 Per Share
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced today a $0.85 per share dividend for the second quarter of 2016. The dividend is payable on June 30, 2016, to shareholders of record as of June 16, 2016. The ex-dividend date is June 14, 2016.
read more...↧
Vienna Stock Exchange: Monthly Statistics For April 2016
The monthly statistic includes turnover data broken down by market segments and markets, as well as index values.
read more...↧
↧
Intercontinental Exchange Reports ICE & NYSE April 2016 Statistics
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today reported April 2016 trading volume and related revenue statistics, which can be viewed on the company’s investor relations website at http://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet.
read more...↧
Do Ping Pong Sales Predict Tech Downturns?
 |
| Source: Wall Street Journal |
Zusha Elinson has written a fun and thought-provoking article in today's Wall Street Journal. The article is titled, "Is the Tech Bubble Popping? Ping Pong Offers an Answer." Elinson found that ping pong table sales decreased 50% in the first three months of 2016. Venture capital financing decreased by 25% in the same time period. Elinson cites information from retailers and wholesales indicating that firms such as Twitter, Intel, and Yahoo have all reduced or stopped their purchases recently.
Is there any truth to the theory that ping pong sales are a leading indicator? Who knows?! However, it's worth noting that many large companies have purchased ping pong tables (and other games) in recent years, in hopes of emulating the culture of start-ups in Silicon Valley. They have learned a hard lesson. Buying ping pong tables does not create an innovative culture. In fact, it does nothing really unless you transform the fundamental attitudes, beliefs, and values of the organization. In fact, you create a skepticism in many employees if you add ping pong tables, but fail to change the shared norms, expectations, reward systems, and leadership style of the organization. They see the move for just what it is - a superficial attempt to influence employee satisfaction without an underlying shift in how work actually gets done.
↧
Deutsche Börse: Statement Of intention By Intercontinental Exchange, Inc. Not To Make An Offer For London Stock Exchange Group Plc.
The Management Board of Deutsche Börse AG has noted that Intercontinental Exchange, Inc. has today released a statement of intention not to make an offer for London Stock Exchange Group plc.
↧
More Pages to Explore .....
