Capital Markets

Este livro é um projeto que vem sendo pensado, desenhado e estruturado há algum tempo pelos coordenadores do trabalho. A sua realização requereu o esforço e o apoio de várias frentes no Banco Mundial e no Tesouro Nacional. Os autores, cuidadosamente selecionados, dispuseram de seu tempo e dedicação para escrever capítulos ricos em informações, compartilhando suas experiências como gestores e conhecedores de dívida pública. Além deles, agradecemos: À Secretaria do Tesouro Nacional, especialmente ao secretário-adjunto Paulo Valle por seu empenho para que a elaboração do livro fosse possível. Adicionalmente, à Coordenação-Geral de Desenvolvimento Institucional, à Karla de Lima Rocha e ao Bruno Santos Ribeiro que auxiliaram na organização. Ao Banco Mundial, principalmente José Guilherme Reis e Deborah Wetzel, que apoiaram e viabilizaram este projeto, e à Zélia Brandt de Oliveira pelo essencial auxílio no processo de publicação. Além disso, agradecemos o fundamental apoio de

Este artigo discute dois temas relacionados ao tratamento equitativo dos investidores no mercado de capitais: high frequency trading (HFT) e insider trading. Apresentamos duas definições de HFT e as controvérsias associadas aos serviços de co-location, venda de acesso a informação com discriminação e flash orders. Concluímos que a licitude da atividade de HFT depende de uma ponderação entre equidade e eficiência e sua qualificação como insider trading requer uma interpretação extensiva do conceito de informação relevante e uma preponderância de razões de ordem ética sobre as de ordem econômica.

This study examined some of the major issues pertaining to mutual funds in India. The excess returns provided by the mutual funds and their market timing ability were statistically evaluated. The influence of organisational factors on the excess returns were also examined. The major findings from the analysis are discussed below. Later, the limitations of the study and suggestions for further research are given. We have in all considered 97 schemes for the period of 1987-1994. Out of these 97 schemes we have considered 82 schemes for analysis after removing the schemes for which less than 15 monthly returns were available. Of these 82 schemes, we had data on market prices for 20 schemes. Net Asset Values (NAVs) for 73 schemes and repurchase prices for 9 schemes. Of the 82 schemes, 18 were growth schemes, 28 were income and growth schemes, 20 were income schemes and 16 were tax planning schemes. Each option of a scheme was considered a separate scheme. We used market prices, NAVs and repurchase prices for returns and used Sensex, Natex, ET Index as market proxies. The analysis indicates that monthly returns of the market indices and schemes are normally distributed and hence statistical conclusions based on normality can be made.

Debt financing involves borrowing money that would be refunded over a period normally with interest. Secured borrowings involves the borrower allowing the lender an interest in specific assets (fixed charge) or all assets (floating charge) which are not specified. The aim of this paper is to briefly examine the evolution and development of floating charges in the UK and its advancement with the use of Case-Law

This Paper, written for the “Globalization of the United States Litigation Model” symposium at Brooklyn Law School (October 21, 2011), inquires on whether emerging capital markets are shifting toward enhanced regulatory intensity in the enforcement of their securities laws, under the context of global legal convergence. It ventures into this puzzle of globalization, corporate law enforcement, and financial development, in light of the increasing phenomenon of regulatory convergence and international cooperation among securities regulators, in the realm of capital market surveillance and enforcement.

Focus is placed on the emerging Latin American region, namely Brazil’s securities market. The study explores Brazil’s securities enforcement system during the wave of legal and institutional reform dating back to the turn of the century, resulting from competing dynamics between incumbent controlling owners resisting change, and global forces demanding enhanced corporate law and governance.

A decade onward, aim is set at identifying and reflecting upon selected instances that, when combined and analyzed, suggest that Brazil has pursued the enforcement of its securities laws with enhanced regulatory intensity — both as a result of i) adopting a more robust institutional design with enforcement structures and practices characteristic to developed global markets, and; ii) boosting implementation of these practices, in view of preliminary evidence of enforcement on the ground, in terms of actual enforcement activity and resources allocation toward market surveillance.

The evidence identifies a transformation of Brazil’s securities enforcement system during the past decade, revolving around its Securities and Exchange Commission (CVM). The research showcases how CVM came to embody features of securities enforcement systems in developed markets — like the U.S. model. These features are much in line with what the U.S. academic literature has envisioned as enforcement guidelines that emerging capital markets should follow for effective enforcement. They include, among others, CVM (1) adopting a fundamental policy to prioritize enforcement; (2) modeling its structure after the U.S. SEC’s “sole-entity” model, including an independent Board of Commissioners; (3) undergoing a conversion into an ex-post law enforcement-driven agency; (4) achieving considerable political independence from the executive branch; (5) establishing a stand-alone enforcement program with a mandate; (6) having access to an enhanced tool-kit to combat serious corporate wrongdoing in “real-time”; (7) institutionalizing the ability to settle with wrongdoers; and (8) relying on a “multiple-enforcers” approach involving active collaboration among public, private, and self-regulatory enforcement channels — by establishing partnerships with the industry, via a sophisticated self-regulatory regime, sharing the burden of market surveillance with a quasi-governmental FINRA-like SRO; with the criminal justice authorities; with the international community; and, to a lesser extent, with the judiciary. Accordingly, the latter half of the decade witnessed an increase in implementation in terms of budget, staffing, and actual enforcement activity, yielding a surge in administrative actions, sanctions, and settlements, and a more visible targeting of serious misconducts.

The study sheds light on how these developments may speak to the globalization of securities enforcement and the influence of developed markets in the evolution of emerging securities enforcement systems. It showcases how Brazil’s recent experience with securities enforcement, could well be a reflection of the path lying ahead for emerging capital markets in today’s global arena.

Capitalism has a considerable capacity to create material wealth and spur technical innovations but this process  often comes along with inequality, booms and recessions and recurrent financial crisis. This paper is organised in four sections included this Introduction. Section B takes a look at several episodes of economic and financial crises throughout history in the 19th, 20th and early 21st centuries;  Section C interprets the historical perspective on crisis regarding links between macro conditions and financial instability, the nature of the social contract and various regularities about the causal factors of different crisis and the role of debt in making them more protracted. Section D examines the current (mis) direction of mainstream economic analysis and points to the flaws of the IMF and Central Banks in the run –up to the 2008-09 crises along with the pitfalls of austerity. Section E concludes.

Purpose -The paper aims to examine the value relevance of alternative accounting performance measures in Australia. It also documents the relative and incremental value relevance of revenue vis-à -vis earnings and the longitudinal changes in such value relevance. Finally, the impact of certain firm characteristics including firm life cycle on the value relevance of revenue and earnings information is investigated. Design/methodology/approach -The paper utilises data on Australian listed companies from 1992 to 2005 on the level of and changes in seven alternative accounting performance measures. Standard ordinary least square regression is conducted. Findings -Results reveal that: the coefficient estimates on all the performance measures are much higher for large firms compared to their small firm counterpart; the explanatory power of incremental revenue in explaining stock returns has declined significantly over the sample period; and life cycle analysis shows that the combined coefficients for both revenue and earnings are significant in the growth and maturity stages of the firm life cycle. Practical implications -When making equity valuation decisions investors consider firms' fundamentals as reflected in financial statements. However, which line item is more important for equity valuation is an important consideration. From a regulatory perspective, this stream of research is quite relevant because standard setters will have evidence from an investor viewpoint about whether certain line items, subtotals, and totals should be defined in standards and required to be displayed in financial statements. Originality/value -The paper adds to the existing capital market research in Australia by documenting differential persistence of alternative performance measures.

This paper used complementary panel data models that are fixed effect regression model and panel vector auto regression model. The study was motivated by the hypothesis that both macroeconomic and microeconomic variables have an effect on the loan quality. The first part of the research was to determine the specific macro and microeconomic variables that give rise to the non-performing loans (NPLs) using fixed effect regression model. The empirical findings of this study provide evidence that nonperforming loans depends on macro and micro economic variables, the trend analysis of Zimbabwean commercial banks' shows an upward movement of over the period of study. The study found out that Gross domestic product (GDP), Inflation, loan deposit ratio and bank size had a statistical significant effect on the level of non-performing loans (NPLs). The second part was mainly to model the dynamic relationship of all the variables that were found to affect nonperforming loans (NPLs); this was done through impulse response analysis based on PANEL VAR model. One standard shock to credit growth will be greatly felt in the sixth year, whereas of size of the bank will have a great negative impulse in the seventh year.

La desregulación del sistema financiero mundial ha sido culpada por la Gran Recesión que inició en 2008 y no acaba de terminar. Sin embargo hay eras sin regulación alguna o con mucho menor que la pre-crisis sin burbujas ni crisis similares. Este artículo concentra su atención en la manipulación del crédito por parte de los bancos centrales que disloca la relación entre inversiones y ahorro real, causando burbujas en la bolsa y crisis generalizadas tan innecesarias como dolorosas.

The euro has been in crisis for weeks. Amid market rumors and political trade‐offs, it can be hard
to find precise legal bearings. In such situations, the best way to understand the extent and limits
of the legal rules is to go back to the source: the contracts and statutes (in this case, the European
treaties).

In their study "The cost of capital, corporation finance and the theory of investment" (1958) laureates of Nobel Price Nobel Franco Modigliani and Merton Miller represent what could possibly be the most important theory for the structure of capital, through which they explain the effect of the capital structure for the value of companies. Despite the hard work by Modigliani and Miller and the entire time spent by numerous scholars in developing concepts regarding this theory, we can say that it still remains unclear and faces many objections. This paper attempts to assess and make a critical review of Modigliani and Miller's Theory and the dominating literature that is pro and against this theory, aiming to identify the theory's importance and contribute to the field modern finances. To this end, the paper assessed and analyses Modigliani and Miller's theorem by considering the original work of authors Modigliani and Miller

Th~s study hypothesizes that because shareholders have a liquidation option, losses are not expected to perpetuate. They are thus less informative than profits about the firm's future prospects. The re~ult~ are cnn.gistent with the hypothesis. They also show that the documented increase in the earnings response coefficient as the cumulation period increases appears to be due exclusively to the effect of losses. The liquidation option effect extends to profitable cases where earnings are low enough to make the option attractive. Alternative explanations for the low informativeness of losses such as mean reversal of earnings are not supported by the tests.

The global financial crisis and shrinking aid flows have led to decreased availability of long-term debt finance for Least Developed Countries (LDCs), particularly for infrastructure. On the other hand, resource-related foreign direct investment (FDI) in those countries has remained substantial. This note presents two models in which the natural resource wealth of LDCs has been used as a means to overcome the dearth of finance sources necessary for non-resource-related investments, and outlines country-specific factors that could tilt the balance between risks and opportunities to the latter.

The economy of Japan is the third largest in the world by nominal GDP, the fourth largest by purchasing power parity and is the world's second largest developed economy. According to the International Monetary Fund, the country's per capita GDP (PPP) was at $36,899, the 22nd-highest in 2013. Japan is the world's largest creditor nation, generally running an annual trade surplus and having a considerable net international investment surplus. Facing increasing competition from China and South Korea, manufacturing in Japan today now focuses primarily on high-tech and precision goods, such as optical instruments, hybrid vehicles, and robotics. Besides the Kantō region, the Kansai region is one of the leading industrial clusters and manufacturing centers for the Japanese economy.

In Digitalized Finance, Edemilson Paraná investigates the relationship between the development of Information and Communication Technologies (ICT) and the process of financialization of economies on a global scale, particularly in Brazil. The book explains the influence of ICT in the emergence and consolidation, especially from the 1980s, of new forms of operation and management of the globalized financial system, highly connected, operated in “real time” with intensive use of technological features, and how these advances are related with the economic and social changes in question. It also describes how contemporary capital markets work, where the search for earnings is leveraged by sophisticated mathematical models, robots and automated trading software that seek financial gains in the milliseconds scale.

Sommario: 1. Il servizio di consulenza finanziaria. - 2. I tratti caratteristici della consulenza in materia di investimenti. - 2.1. La distinzione tra raccomandazioni e semplici informazioni. - 2.2. L'oggetto della raccomandazione: pareri generici e raccomandazioni generali - 2.3. L'adeguatezza della raccomandazione al cliente. - 2.4. Le modalità e i mezzi di comunicazione utilizzati. - 2.5. La previsione di un compenso e il requisito di "professionalità". - 3. Riserva di attività e prestazione del servizio di consulenza finanziaria: modalità e requisiti di iscrizione all'Albo Unico dei Consulenti Finanziari e delle Società di Consulenza Finanziaria.

In more and more competitive and changing world, comprehend the understanding of internal and external environments of an organisation becomes more important than ever before. To have a fruitful and realistic strategic plan, the organisation needs to have an effective internal and external environmental analysis. The aim of this paper was to have a comparative analysis of internal and external environments of the hospitality industry with particular reference to Hyatt Hotel, UK and Hotel The Cox Today, Cox's Bazar Bangladesh. In terms of secondary data, this paper has used a number of tools that are widely used in analysing internal and external environment, these include SWOT analysis, PESTLE analysis and Porter's five forces. In order to gather primary information, this paper has followed by a qualitative method in which analysing of the documentation of these two hotels (both online and printed documents) have been used. The findings of this paper have argued that both hotels have some strength that can be used for business growths, some weaknesses that need to be improved, some opportunities that can be achieved, and some threats that need to be protected. The findings have revealed that Hyatt is a popular brand and well-known hotel in the world. It operates business all over the world with a group of multicultural experienced employees. On the other hand, Hotel The Cox Today, Cox's Bazar is a local popular hotel. However, both hotels need to consider some issues whist developing a strategic plan such as technological changes, competitors, new entrance, bargaining power of the customers, economic situation, environmental issues and legal policies and laws.

The purposes of this research are to examine the probability of price reversal and intraday trading activity based on market microstructure theory at Indonesia Stock Exchange (IDX). This research used purposive-stratified random sampling to banking sector with tick size IDR5. The variables of empirical model are probability of price reversal, trading volume, frequency of transaction, proxy of volume per frequency (V/F), price volatility and liquidity. The trading fraction of tick-by-tick in this research is 15 minutes. To determine price reversal probability, this research uses multiple logistic specification with categorical data as a dependent variable. The results indicate that returns of banking sector on low tick size and the extent of intraday trading are negatively correlated to price reversal caused by the bid-ask spread bouncing and corporate action. However, the trading volume, frequency of transaction, proxy of volume per frequency (V/F), price volatility and liquidity are positively correlated to probability of price reversal.

The free movement of capital – as it is traditionally seen as the fourth freedom, after goods, workers and persons, services and establishment – is a long-standing objective of the European Union, a fundamental freedom at the heart of the single market. The paper summarizes the development of the free movement of capital by describing the provisions of the primary law sources and listing the prominent directives and regulations. The major challenges of the capital liberalisation are demonstrated through the case law of the Court of Justice of the European Union, highlighting the different areas and judgments, legal principles. Finally, the situation of the Capital Market Union initiative and the Action plan are presented in details. The catching up is important for the non-euro zone states, since they could have experienced the disadvantages of the backlog in the case of the Bank Union, where the European Central Bank granted unlimited liquidity with favourable conditions for the eurozone member banks after the financial crisis. Later even similar situation may occur on capital markets, and on the other hand, a boosting development can start. Whoever stays out, misses out.

Foreign investment was introduced in 1991 under Foreign Exchange Management Act (FEMA). This step was taken to add some source of capital formation in India as other developing economies were already in this practice. As a result inflow of Foreign Capital has become striking measure of economic development in both developed and developing countries Now the developing countries are witnessing changes in the composition of capital flows in their economies because of the expansion and integration of the world equity market. FDI and FII thus have become instruments of international economic integration and stimulation. The Indian stock markets are also experiencing this change. FDI & FII are becoming important source of finance in developing countries including India. It is widely assumed that FDI & FII along with some other external factors such as global economic cues, Exchange rate and Internal factors such as demand and supply, market capitalization, EPS generally drive and dictates the Indian stock market. The current paper makes an attempt to study the relationship and impact of FDI & FII on Indian stock market using statistical measures correlation and regression analysis. Sensex and CNX Nifty were considered as the representative of stock market as they are the most popular Indian stock market indices. Based on 10 years data starting from 2002 to 2011, it was found that the flow of FDI has no significant impact on stock market but FII in India determines the trend of Indian stock market.

Aktuell befinden sich, laut Coin Market Cap , Stand 12. Dezember 2018, 2069 Kryptowährungen weltweit im Umlauf; wichtigste und bedeutendste Kryptowährung ist dabei der Bitcoin. Sein Börsenwert (market cap) liegt bei etwa 53 Milliarden US-Dollar. Alle Kryptowährungen zusammengenommen generieren einen Umsatz von ca. 13 Milliarden US-Dollar pro Tag. Dadurch werden sie für Investoren und sogar für (kleinere) Staaten zu einer attraktiven Finanzanlage und einem wichtigen Finanzderivat. Die Republic of Marshall Islands ist der erste Staat weltweilt, der eine Kryptowährung als offizielles Zahlungsmittel eingeführt hat. Gem. § 103 (a) des Sovereign Currency Act of 2018 ist der „Sovereign“ oder „SOV“ (Bezeichnung der Währung) „a digital decentralized currency based on blockchain technology, which will be issued by the Ministry of Finance, in accordance with this Act and shall be a legal tender of the Republic of Marshall Islands“. Auch in diesem Fall gibt es zwei Handelsmöglichkeiten, um Kryptowährungen zu erwerben und mit ihnen Handel zu treiben; die Währung ließe sich entweder per Direktkauf erwerben oder als Finanzderivat auf dem Finanzmarkt platzieren. Seit einigen Jahrzehnten wird deshalb weltweit financial engineering  betrieben, um solche Finanzinnovationen (z. B. Bitcoin oder SOV) für Investoren zu kreieren, die eine möglichst hohe Rendite generieren. Je höher sie ist, desto höher das Risiko, das Investment, durch die zugrundeliegende Spekulation, zu verlieren.
Kapitalmarkttransaktionen im Zusammenhang mit Kryptowährungen zu untersuchen, ist ein Ziel der vorliegenden Arbeit. Wie eine solche Transaktion funktioniert, soll am Beispiel des Finanzderivates Futures (future contract) exemplifiziert werden. Dabei ist zu fragen, ob und wie dies für „physisch“ gelieferte Bitcoins funktioniert und welche rechtlichen Fragen sich dabei stellen. Die Arbeit gliedert sich demnach in folgende Teile: Zunächst soll das allgemein-politische, ideologische Thema Kryptowährungen aus technischer (Funktionsweise), ökonomischer (Geldtheorie) und rechtlicher (Rechtslage) Sicht besprochen werden (B.). Im nächsten Schritt sollen Futures, beginnend mit der Aushandlung, dem Vertragsschluss und den Rahmenverträgen über das Clearing zum Settlement, näher untersucht werden (C.). Im letzten Schritt sollen die zwei vorher erörterten Punkte zusammengeführt werden, und zwar zu einem Future mit einer Kryptowährung (Bitcoin) als underlying asset (D.).

Rapid price increase in food/agricultural commodities has gained attention after the “Price Spike” in 2007-2008. Again the same trend was observed in 2010 due to which it increases concern about the volatility in commodity prices. This study aims to investigate the factor affecting volatility of selected food and agricultural commodities. Monthly data from April 1983 to April 2013 is taken for analysis. GARCH (1, 1), GJR (1, 1) and EGARCH (1, 1) models are estimated for all the variables using normal and Student-t distribution. The results conclude that the mean and the volatility effect of exchange rate and interest rate are transmitted across all the selected commodities. Volatility in the price of fertilizer is only transmitted on the volatility of sunflower oil. Later, analysis shows that past price has significant impact on current prices for all the commodities except for soybean oil, sunflower oil and cotton.

Notary Public was a public offcial who conducted half of Government’s public function, and had the authority to draw authentic acts and others authorities as regulated in Law Number 30 of 2004 concerning Notary Offcial, which was ammended with Law Number 2 of 2014 concerning the Ammendment of Law Number 30 of 2004 concerning Notary Offcial. The roles of Notary, which included his/her capacity as public offcial who had the authority to draw authentic acts, was needed in every aspects of human lives, especially in private law. Nowadays, capital market had became an alternative investment funding source in society.  The attendace of Notary within capital market’s activities was needed, especially in the terms of the pressence of legal actions taken by those who involved in capital market activities, who, need legal certainty of the acts conducted in capital market, including legal acts, known as corporate actions. The roles of Notary became important in corporate actions which involved capital market’s stakeholders to assure that such actions were not against the law and to provide formed evidence about the actions.

serde, Türk sermaye piyasasının yeni düzenlemesi olan 6362 sayılı Sermaye Piyasası Kanunu’nun tüm bölümleri ve ilgili tebliğler incelenmiş olup bunlara ek olarak Türk sermaye piyasasının temel göstergeleri dünden bugüne veriler ile kıyaslanmıştır. Kitabın ilk bölümünde sermaye piyasasının işlevleri, Kanunu’nun kapsamı ve amacı, Kanun’da tanımlanan sermaye piyasası araçları ve söz konusu araçların ihracına yer verilmiştir. İkinci bölümde ise, sermaye piyasasının kurumlarına ve bu kurumların gerçekleştirebileceği faaliyetlerin detayları incelenmiştir. Türk sermaye piyasasının düzenleme ve denetleme otoritesi olan Sermaye Piyasası Kurulu’nun amacı, yapısı, yetkileri ve organizasyon yapıları üçüncü bölümde ortaya konulmuştur. Dördüncü bölümde ise, eski adı ile İstanbul Menkul Kıymetler Borsası, yeni adı ile Borsa İstanbul’un yapısı,işleyişi, piyasaları ve ürünlerine dair bilgiler detayları ile verilmiştir. Beşinci bölümde halka açık ortaklıklara dair hükümler, altıncı bölümde sermaye piyasasındaki denetim ve alınan tedbirler; yedinci bölümde ise sermaye piyasasındaki suçlar ve cezalarına ilişkin düzenlemeler incelenmiştir. Son bölümde, Türk sermaye piyasasının tarihi gelişimi, sayısal veriler ile sermaye piyasasının ne durumda olduğu ve geleceğine dair konular araştırılmıştır. Çalışmanın ana kaynakları; 6362 Sayılı Sermaye Piyasası Kanunu ve ekler kısmında yer alan kanunu tamamlayıcı nitelikteki düzenlemelerdir.

It has been a long held hypothesis that Family owned companies are not keen to raise external finance through the capital markets. On the contrary various family owned companies dominate many stock markets in continental Europe and Asia. This is mainly due to a lack of an efficient market of corporate control where private benefits of corporate control far outweigh the benefits of ownership dilution arising from accessing the capital markets. Therefore if more family owned companies are to access Uganda's capital markets there is need to remove those conditions that hinder an efficient market for corporate control like low levels of stock market development, low levels of adherence to international best practices in corporate governance and low levels of tax compliance.

“Multiple Spread Trading” (MST) is the multidimensional evolution of the traditional “Pair Trading”, also known as “Spread Trading”.
MST is an investment strategy that does not depend on the market trend. It is based on quantitative algorithms that calculate the temporary misalignment between three or more correlated and cointegrated assets compared to their statistical relative trend, exploiting their intrinsic feature of return to “normal” values.
MST can be applied independently of the market conditions – bull, bear or sided market – and on different asset classes, such as futures, Forex, stocks or ETFs.
Due to its peculiarities, MST is an extremely protected approach from the market risks, and it is profitable, as many practical cases demonstrate.