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Global banks and interconnected national banking sectors have been a main characteristic of the modern international financial systems over the last half century. After a sluggish wake up in the early postwar years, international banking took off in the 1970s as the Euromarkets gained traction and strongly developed in the lead up to the international debt crisis of 1982. This article examines the birth of bank globalization in Latin America, a region of the developing world at the centre of global finance and Euromarket developments during this period. It shows that, like their counterparts in industrial countries, leading banking institutions from the region also went international, expanding their presence overseas and their participation in the Euromarkets. The world leading financial centres of London and New York were the main destinations, but they also settled in offshore centres in the Caribbean and other US financial districts from where they conducted international business on their own or in collaboration with other banks. The presence in Germany along with the joint business between Latin American and German banks in the Euromarkets are explored as well. While assessing the extent and scope of early Latin American bank globalization for the first time, the article also provides insights on the evolution and changing nature of this process over the following period. [ABSTRACT FROM AUTHOR]

To study the stock market networks, we propose a community detection procedure, Spectral Clustering On Ratios-of-Eigenvectors with Composite Coefficient of Determination. This method has two main contributions. First, it is simple and fast with small error rates. Second, it addresses the problem that sample correlations are hard to capture the structural characteristics of financial markets. Simulation results show the effectiveness of this method. We build the stock network of the 500 largest companies listed on the New York stock exchanges. We show the rationality of community detection on the stock market network. The detection method explores five communities of the market network. We then provide detailed discussions on the most influential companies. For example, we find the pair features from the largest community. Clarify the difference between near-location pairing and distant-location pairing. Our study obtains some financial meaningful results. We also provide an insight into the internal structure of the stock market. [ABSTRACT FROM AUTHOR]

Regulation 187 governs the behavior of New York life insurance and annuity producers when making recommendations with respect to a life insurance or annuity policy owned or being purchased by a New York consumer. Its purpose is to prevent acts or practices that are deceptive or unfair. A close reading of the regulation reveals many similarities to the Securities and Exchange Commission's (SEC) new Regulation Best Interest. Both require the individual making the recommendation to act in the "best interest" of the consumer. Both impose increased record- keeping requirements. Both emphasize principles-based selling practices. [ABSTRACT FROM AUTHOR]

Theory suggests that reputations allow nonanonymous markets to attenuate adverse selection in trading. We identify instances in which New York Stock Exchange (NYSE) stocks experience trading floor relocations. Although specialists follow the stocks to their new locations, most brokers do not. We find a discernable increase in liquidity costs around a stock's relocation that is larger for stocks with higher adverse selection and greater broker turnover. We also find that floor brokers relocating with the stock obtain lower trading costs than brokers not moving and brokers beginning trading post-move. Our results suggest that reputation plays an important role in the NYSE's liquidity provision process. [ABSTRACT FROM AUTHOR]

In this paper, we consider the optimal portfolio selection problem subject to hard constraints on trading amounts, trading costs, and different rates for borrowing and lending when the risky asset returns are serially correlated. We consider both explicit and implicit trading costs. No assumptions about the correlation structure between different time points or about the distribution of asset returns are needed. The problem is stated as a dynamic tracking problem of a reference portfolio with a desired return. We leverage the methodology of model predictive control (also known as receding horizon control) to design feedback portfolio optimization strategies and to provide a numerically tractable algorithm for practical applications. All expressions are presented in terms of first- and second-order conditional moments. Our approach is tested on sets of real data from the Russian Stock Exchange Moscow Interbank Currency Exchange and New York Stock Exchange. [ABSTRACT FROM AUTHOR]

On October 4, 2011, a high-level financial markets conference, "The Economic Function of a Stock Exchange," was held at Baruch College in New York City. Andrew Brooks, the well-known buy-side trading executive (T. Rowe Price Associates, Inc.) moderated a thought-provoking panel, "What Makes an Exchange a Unique Institution?" In this article, we present the edited transcript of that panel, with footnotes and expanded material from subsequent interviews with the eminent panelists: Alfred Berkeley (then at Pipeline Trading Systems, LLC), Gary Katz (International Securities Exchange), William O'Brien (Direct Edge), Brett Redfearn (J.P. Morgan Securities), and Asani Sarkar (Federal Reserve Bank of New York). [ABSTRACT FROM AUTHOR]

The article offers information on the AngioDynamics Inc., a leading provider of invasive medical devices which is used by professional healthcare providers for vascular access, surgery, peripheral vascular disease, and oncology. It states that the company was founded in Queensbury, New York and has grown into a National Association of Securities Dealers Automated Quotations-listed public company.

This article investigates the impact of short sale constraints on stock returns in a powerful setting in which the uptick rule on the New York Stock Exchange (NYSE) was suspended for a given set of stocks (pilot stocks) by the Securities and Exchange Commission (SEC) in 2005. Comparing future stock returns for pilot stocks and control stocks, I show that the suspension of the uptick rule on average mitigates stock overvaluation by 3.5% of the stock value during a 1-year time period. This effect is profound in stocks with no options, small stocks, and value stocks. Findings in this article are consistent with Miller's (1977) overpricing hypothesis and suggest that removing the uptick rule help improve market efficiency by bringing stock prices closer to their fundamental values. [ABSTRACT FROM PUBLISHER]

This article studies the forecasting properties of linear GARCH models for closing-day futures prices on crude oil, first position, traded in the New York Mercantile Exchange from January 1995 to November 2005. To account for fat tails in the empirical distribution of the series, we compare models based on the normal, Student's t and generalized exponential distribution. We focus on out-of-sample predictability by ranking the models according to a large array of statistical loss functions. The results from the tests for predictive ability show that the GARCH-G model fares best for short horizons from 1 to 3 days ahead. For horizons from 1 week ahead, no superior model can be identified. We also consider out-of-sample loss functions based on value-at-risk that mimic portfolio managers and regulators' preferences. Exponential GARCH models display the best performance in this case. The swings in oil prices that gave investors and traders whiplash in 2004 are not preventing new investors from rushing into oil and other energy-related commodities this year. (...) Ultimately, the rising number of speculator could lead to even more price volatility in 2005, pushing the highs higher and the lows lower. (...) After a generation in the wilderness, the oil futures that are used to make a bet on oil prices have become a bona fide investment, said Charles O'Donnell, who manages Lake Asset Management, a small energy fund based in London. Heather Timmons, The New York Times1 [ABSTRACT FROM AUTHOR]

Volatility measuring and estimation based on intra-day high-frequency data has grown in popularity during the last few years. A significant part of the research uses volatility and variance measures based on the sum of squared high-frequency returns. These volatility measures, introduced and mathematically justified in a series of papers by Andersen et al. [1999. (Understanding, optimizing, using and forecasting) realized volatility and correlation. Leonard N. Stern School Finance Department Working Paper Series, 99-061, New York University; 2000a. The distribution of realized exchange rate volatility. Journal of the American Statistical Association 96, no. 453: 42-55; 2000b. Exchange rate returns standardized by realized volatility are (nearly) Gaussian. Multinational Finance Journal 4, no. 3/4: 159-179; 2003. Modeling and forecasting realized volatility. NBER Working Paper Series 8160.] and Andersen et al. 2001a. Modeling and forecasting realized volatility. NBER Working Paper Series 8160., are referred to as 'realized variance'. From the theory of quadratic variations of diffusions, it is possible to show that realized variance measures, based on sufficiently frequently sampled returns, are error-free volatility estimates. Our objective here is to examine realized variance measures, where well-documented market microstructure effects, such as return autocorrelation and volatility clustering, are included in the return generating process. Our findings are that the use of squared returns as a measure for realized variance will lead to estimation errors on sampling frequencies adopted in the literature. In the case of return autocorrelation, there will be systematic biases. Further, we establish increased standard deviation in the error between measured and real variance as sampling frequency decreases and when volatility is non-constant. [ABSTRACT FROM AUTHOR]

Historic events battered both the financial markets and the real economy throughout 2008 and the first quarter of 2009. On Wall Street, the destruction was most evident through the bankruptcy of Lehman Brothers; the acquisitions of Bear Stearns, Merrill Lynch, and Wachovia; and the implosions of AIG, Fannie Mae, and Freddie Mac. And Main Street wasn't spared, as the declines in home prices, large federal involvement in the banking and the automobile industries, a rapid rise in unemployment, and the explosion of the U.S. federal budget deficit have shaped millions of lives and will dramatically alter the country's economic future. © 2009 Wiley Periodicals, Inc. [ABSTRACT FROM AUTHOR]

Using a large cross section of intraday data from 25 developed countries, we study commonality in liquidity, both within and across international equity markets, over 15-minute intervals. Within-country and cross-border liquidity commonalities are found to be significant and, after controlling for country and industry effects, relate to such firm-specific measures as size, bid–ask spread, and the extent of analyst coverage. Additionally, within-country liquidity commonality is lower for firms with depository receipts cross listed in New York or London. Cross-border liquidity commonality is particularly high for firms with relatively high actual ownership by foreign institutions. © 2009 Wiley Periodicals, Inc. Jrl Fut Mark 29:630–652, 2009 [ABSTRACT FROM AUTHOR]

The article offers information on the Term Securities Lending Facility (TSLF) launched by the Federal Reserve Bank of New York. It cites that TSLF, which was launched in March 2008, promotes liquidity in the funding markets and improve the broader financial markets' operation. It discusses the importance of secured funding markets and the first ten auctions for early evidence of the use and effectiveness of such program.

This article focuses on the volatility of crude oil futures prices on the New York Mercantile Exchange. It aims at examining whether this market creates excess volatility, which would not be observed in the absence of such a market. In order to reach this objective, price fluctuations are separated into two components: an information component that reflects a rational assessment of the information arrival, and an error component that represents the noise introduced by the trading process. We show that a significant part of the volatility recorded during exchange trading hours is caused by mispricing errors. In particular, this phenomenon affects the nearest futures contract. [ABSTRACT FROM AUTHOR]

The New York Stock Exchange extended its trading hours by 30 min in 1974 and in 1985; the first extension resulting in a delayed close and the second in an early open. We find a shift in volume to the new period after each extension. Additionally, there is a larger increase in volume after the 1985 extension than after the 1974 extension. We argue that the second effect is explained by the first. The extension at the end of the day allows some investors to postpone their trades, which results in occasional information cancellation or discovery; this mutes the effect of the extension on volume. In contrast, the extension at the start of the day allows some investors to accelerate trades, which precludes information cancellation or discovery and its negative effect on volume. This explanation suggests that the effect of an extension on volume depends, at least in part, on its timing. [ABSTRACT FROM AUTHOR]

The market reaction to financial analysts' stock recommendation revisions is examined in terms of magnitude and direction. It is found that market-adjusted stock returns are associated with the direction of stock recommendation revisions. For the stocks that receive downward stock recommendation revisions, the market-adjusted stock returns can also be explained by the magnitude of stock recommendation revisions, brokerage houses' publicity, firm size, firm age, New York Stock Exchange listing, and stock price momentum. The empirical evidence suggests that financial analysts' downward stock recommendation revisions provide superior information to investors than do upward stock recommendation revisions. [ABSTRACT FROM AUTHOR]

This study examines one-day forward premiums at the hourly level on the New York independent systems operator wholesale electricity market for the period 2001–2005. Examining two representative zones, the authors show that premiums vary by hour of day, day of week, and month. We report differences in the level and volatility of the premium across zones. We measure the impact of opening the market to outsiders through the introduction of virtual bidding. Results indicate that virtual bidding is associated with lower premiums in off-peak or near-off-peak hours; it is associated with higher premiums during peak hours. © 2007 Wiley Periodicals, Inc. Jrl Fut Mark 27: 1107–1125, 2007 [ABSTRACT FROM AUTHOR]

In November 2006, the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Inc. (NASD) agreed in principal to merge the 2, 400-person NASD with roughly 470 employees from NYSE Regulation, Inc., creating a single US industry regulator: the Financial Industry Regulatory Authority (FINRA). It is the private-sector regulator for all securities broker-dealers doing business with the public in the USA. Such a union promises both greater efficiency and an elimination of conflicting or divergent regulation, the foundation of which will be a unified rulebook. The unification of the rulebooks of the NASD and NYSE will act to simplify greatly the regulatory process. The creation of the unified rulebook will furnish an opportunity to do more than synthesise the two rulebooks: it offers a critical opportunity to reconsider all existing rules and to attempt to create a single rulebook that is better than the two from which it is formed. The assistance of willing industry participants will be vital to that effort. This paper outlines the first steps taken in this effort and explains the current status of the harmonisation effort. The process that has thus far informed the harmonisation of the two rulebooks will greatly influence the continuation and finalisation of the project, and an understanding of that process will allow those in the securities industry to help to shape and contribute to its success. [ABSTRACT FROM AUTHOR]

In this paper, we examine the relationship between disclosure level and the cost of equity capital for a sample of international firms cross-listing on the New York Stock Exchange. Increased disclosure has the potential to reduce information asymmetry, reduce the cost of financing and increase analyst following. Using an international asset pricing model, we find that listing firms experience a decrease in both disclosure risk and systematic risk while matching firms do not. Further, we find that the magnitude of the decrease is related to three types of disclosure: accounting standards; analyst following; and exchange/regulatory investor protection. Our results suggest that increased disclosure through accounting standards is beneficial to investors and that disclosure can be accomplished through information intermediaries, e.g., analyst following. For firms with the lowest levels of disclosure prior to cross-listing, all three types of disclosure appear to be valuable. [ABSTRACT FROM AUTHOR]

This article contains two novelties. First, a unified framework for testing and evaluating the adequacy of an estimated autoregressive conditional duration (ACD) model is presented. Second, two new classes of ACD models, the smooth transition ACD model and the time-varying ACD model, are introduced and their properties discussed. New misspecification tests for the ACD class of models are introduced. These are Lagrange multiplier and Lagrange multiplier-type tests against general forms of additive and multiplicative misspecification of the conditional mean function. These forms include tests against higher-order models, tests of no remaining ACD in the standardized durations, and tests of linearity and parameter constancy. The finite-sample properties of the tests are investigated by simulation. Main statistical properties of the two new classes of ACD models that serve as alternatives in tests of linearity and parameter constancy are investigated. Finally, the tests are applied to ACD models of IBM stock traded at the New York Stock Exchange. [ABSTRACT FROM AUTHOR]

In September 2003, several prominent mutual fund companies came under investigation for illegal trading practices. Allegations suggested these funds allowed certain investors to profit from short-term trading schemes at the expense of other investors. Surprisingly, regulatory authorities have known for more than two decades of the potential for such abuses, yet have taken limited steps to correct the problem. We explore investor reaction to the scandal by measuring assets under management, stock returns, and performance. Mutual funds managed by investigated firms show a substantial decline in post-announcement assets under management. These firms also experienced significantly negative announcement-period returns. Finally, we discuss several policy suggestions to prevent future trading abuses and provide direction for future research. [ABSTRACT FROM AUTHOR]

Many countries as they reduce price controls develop an interest in futures markets as a way to manage risk. This article explores the potential of using existing futures markets to hedge cotton in Turkey. Futures prices in New York and Liverpool are not cointegrated and only weakly correlated with cash prices in Izmir. Thus, existing futures markets have limited ability to reduce the risk faced by the cotton industry in Turkey. While there are obstacles to overcome, there does appear to be a potential demand for a cotton futures market in Turkey. [ABSTRACT FROM PUBLISHER]

This article explores new dimensions of the global city in light of the correlation between hegemonic transition and the prominence of financial centers. It counterpoises Braudel's historical sequence of dominant cities to extant approaches in the literature, shifting the emphasis from a convergence of form and function to variations in history and structure. The marked increase of finance in the composition of London, New York and Tokyo has paralleled each city's occupation of a distinct niche in world financial markets: London is the principal center of currency exchange, New York is the primary equities market, and Tokyo is the leader in international banking. This division expresses the progression of world-economies since the nineteenth century and unfolds in the context of the present hegemonic transition. By combining world-historical and city-centered approaches, the article seeks to reframe the global city and overcome the limits inherent in the paradigm of globalization.

Relates the incident of fraud concerning Indiana's bond market in the 1860s. Significance of the New York financial markets to Indiana's mobilization for the Civil War; Impact of the fraudulent activity on the state; Details of the incident.

Federal Reserve Regulation A imposes formal guidelines on borrowing from the discount window and ensures that the facility is used for appropriate purposes. In a way, this regulation imposes a nonprice mechanism that compels depository institutions to be more prudent in exercising their borrowing privileges. In the 1980s, however, banks became increasingly more reluctant to borrow adjustment credit from the discount window. This behavior is puzzling because discount window guidelines have not changed. This paper investigates the reasons behind the weakened demand for borrowed reserves. Our empirical findings suggest that the growing reluctance to borrow stems from the deteriorating financial position of banks during this period. In particular, banks avoided the discount window because they feared that market participants might have interpreted their visits as a signal of serious funding difficulties. [ABSTRACT FROM AUTHOR]

We report an attempt to use financial market data to predict the onset of a variety of international crises. A quasi-experimental design for studying interrupted time series data is applied to the historical behavior of the Hong Kong and New York financial markets. The results are generally disappointing. These markets seem more likely to react to rather than anticipate crisis developments, and frequently issue "false alarms." Comparison of" results for periods where crises took place with those for randomly selected periods where no crisis happened does not engender confidence in markets as crisis predictors. However, there are some notable exceptions to this pessimistic generalization. We conclude that financial indicators may be profitably used in some cases to supplement warning assessments derived from other methods and sources. [ABSTRACT FROM AUTHOR]

This study examines the short-run dynamics of returns and volatility for stocks traded on the New York and Toronto stock exchanges. The main finding is that inferences about the magnitude and persistence of return innovations that originate in either market and that transmit to the other market depend importantly on how the cross-market dynamics in volatility are modeled. Moreover, much weaker cross-market dynamics In returns and volatility prevail during later subperiods and especially for Canadian stocks with shares dually listed in New York. Implications for international asset pricing, hedging strategies, and regulatory policy are discussed. [ABSTRACT FROM AUTHOR]

The article reports on the New York case of Campbell v. State, claimant, who had been erroneously convicted of the crime of forgery in the second degree, was awarded 115,000 dollar as damages for suffering, humiliation, deprivation of liberty and civil rights, and loss of earnings. The award covered the seven and one-half year period from his arrest until his pardon by the Governor of the State of New York. Three and one-half years of this time were spent in prison and the remainder on parole. Campbell, a securities salesman, was arrested in 1938 due to his supposed similarity in appearance to the person guilty of passing numerous forged checks in the New York City area. He was convicted and sentenced to a five to ten year term in prison largely on the basis of positive identification by officers and employees of the banks upon whom the forgeries were perpetrated. The State of New York responded generously in attempting to rectify the wrong done to Campbell, although unfortunately be lived only a short while after the claim was adjudicated. Thus far, however, only three states, California, Wisconsin and North Dakota have provided by statute for the arbitration of such claims against the state by administrative boards.

The article focuses on seasonal variations in the New York money market. It was nearly a half-century ago that W. Stanley Jevons read before the Statistical Society of London his classic paper on the Frequent Autumnal Pressure in the Money Market, and the Action of the Bank of England. Since that time several others han made careful studies of the seasonal movements of the London money market. The subject of seasonal variations in American money markets, however, has been largely neglected by economists, although the fact that the U.S. is to such a large extent an agricultural country makes the subject one of great importance on this side of the Atlantic. The seasonal swings of the money market are quite varied in different parts of the country, and as limits of space prevent a consideration here of more than one city, one shall confine himself/herself largely to New York City, the country's principal money market. The best two criteria for seasonal fluctuations in the New York money market are probably call interest rates on the New York Stock Exchange, and percentages of reserves to deposits in New York associated banks.