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The subject of the study is the theoretical and practical aspects of problem solving and institutional provision of prospects for the use of cryptocurrencies on the financial market. The purpose of the article is to determine the existing scope, advantages and risks of using cryptocurrencies in the financial markets and, on these bases, to justify the strategic directions of their development and the prospects of using them as the latest financial instruments. The methodological basis of the article is a monographic, historical, system-structural analysis and synthesis – when determining the essence, stages of development and use of cryptocurrencies; statistical and economic, fundamental analysis (FA) and technical analysis (TA) – when determining the market, positions, dynamics of cryptocurrencies, their effectiveness as digital assets or investment instruments; mathematical programming, modeling, behavioral finance – when forecasting the dynamics of cryptocurrency rates and the effectiveness of directions and forms of their institutional support. Results of the article. The theoretical foundations of the creation, functioning and use of cryptocurrencies were clarified; identification of factors, functions and competitive advantages, principles of management; determination of the most effective methods of evaluating their courses, market volatility; substantiation of forecasting tools and directions and forms of development of institutional support with the aim of improving its use in the future. Field of application of results. The materials of the article can be recommended for implementation in the activities of financial and economic faculties or institutes of higher education institutions; financial institutions. Conclusions. Cryptocurrencies as digital monetary or financial assets, virtual money are becoming more and more widespread in terms of the amount of monetary mass and the number of types, use by the population all over the world as a full-fledged means of payment; official recognition by the governments of many countries. Their further use is based on identifying and taking into account in practical activity the essence and functions of financial instruments, competitive advantages and risks, and on the basis of this - the development of appropriate strategies and tactics of use. As a financial instrument, cryptocurrency is considered primarily as a means of capital accumulation; means of payment; to a lesser extent - as a means of lending and insurance, investment. However, the strategic directions of using cryptocurrency as a digital asset are related to their use as a financial instrument, not only with its functions and content, but also with investment strategies. They rely on, including and on the cryptocurrency trading strategy and depend on its competitive advantages and risks, types, volumes, market trends, cyclicality and the general state and dynamics of financial and other markets, the socio-economic situation in individual countries and in the world; behavioral economics and behavioral finance. Taking into account the specified factors allows to determine and forecast the strategic directions of its development in the future.

An instance I of the Stable Matching Problem (SMP) is given by a bipartite graph with a preference list of neighbors for every vertex. A swap in I is the exchange of two consecutive vertices in a preference list. A swap can be viewed as a smallest perturbation of I. Boehmer et al. (2021) designed a polynomial-time algorithm for finding the minimum number of swaps required to turn a given maximal matching into a stable matching. We generalize this result to the many-to-many version of SMP. We do so first by introducing a new representation of SMP as an extended bipartite graph and subsequently by reducing the problem to submodular minimization. It is a natural problem to establish the computational complexity of deciding whether at most k swaps are enough to turn I into an instance where one of the maximum matchings is stable. Using a hardness result of Gupta et al. (2020), we prove that this problem is NP-hard and, moreover, this problem parameterised by k is W[1]-hard. We also obtain a lower bound on the running time for solving the problem using the Exponential Time Hypothesis. [ABSTRACT FROM AUTHOR]

Abstract Background Prompting employees to swap their usual lunches for lower-energy alternatives may help align energy intake with public health recommendations. We tested the effect of offering lower-energy swaps with and without physical activity calorie equivalent (PACE) information on the energy of lunches pre-ordered in an online hypothetical workplace canteen. Methods UK employed adults (n = 2,150) were invited to hypothetically pre-order their lunch from the canteen through a custom-made online platform. They were randomised 1:1:1 to: (i) control: no swaps offered; (ii) lower-energy swaps offered; or (iii) lower-energy swaps offered with PACE information. The primary outcome was the total energy ordered using analysis of covariance and controlling for the energy content of the initial items ordered. Secondary outcomes were swap acceptance rate and intervention acceptability. Results Participants were 54% female, had a mean age of 36.8 (SD = 11.6) and a BMI of 26.3 (SD = 5.6). Compared with an average 819 kcal energy ordered in the control, both the swaps and swaps + PACE interventions significantly reduced average energy ordered by 47 kcal (95% CI: -82 to -13, p = 0.003) and 66 kcal (95% CI: -100 to -31, p

When the 2007 global financial crisis hit financial markets, European leaders were quick to point the finger at US markets, excessive risk-taking, and insufficient regulation. However, it soon became apparent that European banks were more exposed than their Wall Street counterparts. With massive dollar liabilities, European banks were dependent on the US to act as a global lender of last resort. The crisis revealed a level of transatlantic interdependence that had been unknown to most observers and policymakers prior to the crisis. We argue that this represents a paradox, given that the project of the European Monetary Union was partly motivated by a desire to make Europe more independent from the US dollar. The euro was a response to the challenge of “it’s our dollar, but it’s your problem.” In this article, we examine how the European vulnerability to the US dollar that began post-Bretton Woods did not, in fact, disappear with the creation of a European currency. Instead, through financialization and deregulation, European financial markets developed new, complex interactions with US financial markets. This financialization of transatlantic banking flows created a new type of interdependence. As European banks were so heavily invested in US markets, this gave the US authorities a direct interest in bailing them out. While cross-border banking flows have decreased since the crisis, the interdependencies remain, and currency swaps were used once again to handle the economic fallout from Covid-19. In the area of financial and monetary policy, the transatlantic relationship remains strong and stable within a dollar hegemony.

Since there is an active trend of increasing derivative instruments in the Russian derivatives market, the object of this study was exchange-traded and over-the-counter derivatives in Russia, and the purpose of the study – the development of their application. To achieve this goal, such scientific research methods as analysis, comparison, description and historical method are used. The most important conclusions of the study are that the derivatives market has developed rapidly since 2013, but in 2021 it witnessed a significant increase due to the appeal of a large number of investors to invest in financial markets, and due to increased concern about the volatility of the exchange rate, due to which many dealers dealing in derivatives buy these instruments sometimes for the purpose of hedging, and at other times for the purpose of speculation or both.

The purpose of the paper is to determine the current state of the global derivatives market in the context of structural and dynamic processes and to substantiate the prospects for its further development, given the existing global challenges. Methodology. The research is based on analysis and comparison of data from the Bank for International Settlements (BIS) for the period from 2000 to 2020. The paper uses methods of correlation analysis to establish the relationship between the state of the world economy and the size of the derivatives market. The method retrospective study of the dynamic series was applied to structure information of derivatives world market development. To reveal the features, the specifics of the usage of various mechanisms and tools for the distribution of derivatives, and established the differences between exchange and over-the-counter trading article applies elements of structural analysis. The results of the study showed the importance and scale of the global derivatives market for the global economy. They allowed us to reveal a close relationship between market size and world GDP and assess the structural features of the market. Accordingly, the derivatives market development has been periodized since 2000. Its structural features have been revealed in terms of the type of transactions, underlying asset, place, and currency of derivatives trading, their maturity, etc. Consequently, a significant predominance of OTC derivatives trading has been found, due to greater flexibility of instruments and less formalized control. The predominance of different types of derivative instruments in different segments of the market has been determined. Practical implications. The obtained conclusions are of interest in terms of monitoring the world derivatives market. They allow the correct assessment of the processes occurring in the market and respond to them rationally. The scientific confirmation of the connection between the size of the world economy and the market for derivative financial instruments is of particular practical importance. Systematization of market reform directions allows a better understanding of the ongoing processes in the over-the-counter derivatives market. Value/originality. The value of the article lies in the complexity of the analysis of the state and prospects of the derivatives world market development. It is provided through a detailed structural analysis, extrapolated to measures of market system transformation, as well as possible prospects for its further development.

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

When the 2007 global financial crisis hit financial markets, European leaders were quick to point the finger at US mar‐ kets, excessive risk‐taking, and insufficient regulation. However, it soon became apparent that European banks were more exposed than their Wall Street counterparts. With massive dollar liabilities, European banks were dependent on the US to act as a global lender of last resort. The crisis revealed a level of transatlantic interdependence that had been unknown to most observers and policymakers prior to the crisis. We argue that this represents a paradox, given that the project of the European Monetary Union was partly motivated by a desire to make Europe more independent from the US dollar. The euro was a response to the challenge of “it’s our dollar, but it’s your problem.” In this article, we examine how the European vulnerability to the US dollar that began post‐Bretton Woods did not, in fact, disappear with the creation of a European currency. Instead, through financialization and deregulation, European financial markets developed new, com‐ plex interactions with US financial markets. This financialization of transatlantic banking flows created a new type of inter‐ dependence. As European banks were so heavily invested in US markets, this gave the US authorities a direct interest in bailing them out. While cross‐border banking flows have decreased since the crisis, the interdependencies remain, and currency swaps were used once again to handle the economic fallout from Covid‐19. In the area of financial and monetary policy, the transatlantic relationship remains strong and stable within a dollar hegemony. [ABSTRACT FROM AUTHOR]

Background: Prompting employees to swap their usual lunches for lower-energy alternatives may help align energy intake with public health recommendations. We tested the effect of offering lower-energy swaps with and without physical activity calorie equivalent (PACE) information on the energy of lunches pre-ordered in an online hypothetical workplace canteen. Methods: UK employed adults (n = 2,150) were invited to hypothetically pre-order their lunch from the canteen through a custom-made online platform. They were randomised 1:1:1 to: (i) control: no swaps offered; (ii) lower-energy swaps offered; or (iii) lower-energy swaps offered with PACE information. The primary outcome was the total energy ordered using analysis of covariance and controlling for the energy content of the initial items ordered. Secondary outcomes were swap acceptance rate and intervention acceptability. Results: Participants were 54% female, had a mean age of 36.8 (SD = 11.6) and a BMI of 26.3 (SD = 5.6). Compared with an average 819 kcal energy ordered in the control, both the swaps and swaps + PACE interventions significantly reduced average energy ordered by 47 kcal (95% CI: -82 to -13, p = 0.003) and 66 kcal (95% CI: -100 to -31, p < 0.001), respectively. Compared with offering swaps only, the swaps + PACE intervention led to significantly higher swap acceptance (OR: 1.63, 95% CI: 1.27 to 2.09, p < 0.001) but did not significantly reduce energy ordered (-19 kcal, 95% CI: -53 to 16, p = 0.591). About 65% and 16% of intervention participants found the swap interventions acceptable and unacceptable, respectively, with the swaps + PACE intervention being considered more acceptable than swaps only (OR: 1.32, 95%CI: 1.09 to 1.60, p < 0.004). Conclusion: Offering lower-energy swaps with or without PACE information reduced the energy of pre-ordered lunches experimentally. Both interventions hold promise for reducing the energy of purchased foods and drinks. Trial Registration As Predicted reference number: 56358, 22/01/21, https://aspredicted.org/pw2qr.pdf [ABSTRACT FROM AUTHOR]

Using syndicated loan‐level data, we document and explain the causes and implications of a new and surprising stylized fact. In the midst of the financial crisis, dollar borrowing by leveraged Eurozone (EZ) corporates rose dramatically relative to their euro borrowing. We show that this resulted from a shift from EZ to non‐EZ banks, mainly U.S. banks. This was combined with an increase in the proportion of dollar lending by non‐EZ banks, explained by a rise in the relative cost of euro wholesale funding and the disruptions in the FX swap market. Non‐EZ banks thus dampened the 2007–09 credit crunch in Europe. [ABSTRACT FROM AUTHOR]

This study is focused on managing climate change risk through the use of catastrophe bonds as alternate risk transfer mechanism which allows insurers to spread their risks through capital markets and financial instruments rather than reinsurance market. In the last 20 years India has endured several natural catastrophes which were categorized as the direct result of climate change. Such events have immense impact on human life, economy of the country and the insurance industry as well as reinsurers’balance sheets. In this paper we explore the feasibility of catastrophe bonds and swaps as alternatives to risk transfer mechanism. It also attempts to analyze the need for alternate risk management mechanisms. [ABSTRACT FROM AUTHOR]

In this paper, we introduce and analyze the fractional Barndorff-Nielsen and Shephard (BN-S) stochastic volatility model. The proposed model is based upon two desirable properties of the long-term variance process suggested by the empirical data: long-term memory and jumps. The proposed model incorporates the long-term memory and positive autocorrelation properties of fractional Brownian motion with H > 1 / 2 , and the jump properties of the BN-S model. We find arbitrage-free prices for variance and volatility swaps for this new model. Because fractional Brownian motion is still a Gaussian process, we derive some new expressions for the distributions of integrals of continuous Gaussian processes as we work towards an analytic expression for the prices of these swaps. The model is analyzed in connection to the quadratic hedging problem and some related analytical results are developed. The amount of derivatives required to minimize a quadratic hedging error is obtained. Finally, we provide some numerical analysis based on the VIX data. Numerical results show the efficiency of the proposed model compared to the Heston model and the classical BN-S model. [ABSTRACT FROM AUTHOR]

One of the important issues for companies is liquidity from domestic and foreign trade. The market is classically defined by the number of available markets. Globalization and free trade zones set up the foreign market, which becomes increasingly important - even for SMEs. This paper analyzed approx. 60,000 bank transactions with foreign reference of Northern German SMEs by using Chi-square test and correlation analysis. The analysis proofs that an increasing number of foreign transfers increases the number of foreign currency accounts per company. The results also show that despite the existence of currency hedging tools, a significant proportion of SMEs continues to expose themselves to currency risk. The willingness to manage currency risks increases with the increase in value per transaction. Transactions with a value of less than EUR 10,000 are often transferred abroad in EUR instead of in foreign currency.

Abstract Background Interventions to reduce the saturated fat (SFA) content of food purchases may help reduce SFA consumption and lower cardiovascular risk. This factorial RCT aimed to examine the effect of altering the default order of foods and being offered a swap on the SFA content of food selected during an online shopping experiment. Methods UK adults who were the primary grocery shoppers for their household were recruited online and invited to select items in a custom-made experimental online supermarket using a 10-item shopping list. Participants were randomly allocated to one of four groups (i) to see products within a category ranked in ascending order of SFA content, (ii) receive an offer to swap to a product with less SFA, (iii) a combination of both interventions, or (iv) no intervention. The primary outcome was the difference in percentage energy from SFA in the shopping basket between any of the four groups. The outcome assessors and statistician were blinded to intervention allocation. Results Between March and July 2018, 1240 participants were evenly randomised and 1088 who completed the task were analysed (88%). Participants were 65% female and aged 38y (SD 12). Compared with no intervention (n = 275) where the percentage energy from SFA was 25.7% (SD 5.6%), altering the order of foods (n = 261) reduced SFA by [mean difference (95%CI)] -5.0% (− 6.3 to − 3.6) and offering swaps (n = 279) by − 2.0% (− 3.3 to − 0.6). The combined intervention (n = 273) was significantly more effective than swaps alone (− 3.4% (− 4.7 to − 2.1)) but not different than altering the order alone (− 0.4% (− 1.8 to 0.9)), p = 0.04 for interaction. Conclusions Altering the default order to show foods in ascending order of SFA and offering a swap with lower SFA reduced percentage energy from SFA in an experimental online supermarket. Environmental-level interventions, such as altering the default order, may be a more promising way to improve food purchasing than individual-level ones, such as offering swaps. Trial registration ISRCTN13729526 https://doi.org/10.1186/ISRCTN13729526 26th February 2018.

Purpose: The aim of this paper is to propose nonlinear autoregressive neural network which can improve quality of bond price forecasting. Methodology/Approach: Due to the complex nature of market information that influence bonds, artificial intelligence could be accurate, robust and fast choice of bond price prediction method. Findings: Our results have reached a coefficient of determination higher than 95% in the training, validation and testing sets. Moreover, we proposed the nonlinear autoregressive network with external inputs using 50 year interest-rate swaps denominated in EUR and volatility index VIX as two external variables. Research Limitation/Implication: Our sample of daily prices between 4th January 2016 and 13th January 2021 (totally 1,270 trading days) suggest that both Levenberg-Marquardt and Scaled conjugate gradient learning algorithms achieved excellent results. Originality/Value of paper: Despite the fact that both learning algorithms achieved satisfying outcomes, implementation of an independent variable into the autoregressive neural network environment had no significant impact on prediction ability of the model.

Purpose: The aim of this paper is to propose nonlinear autoregressive neural network which can improve quality of bond price forecasting. Methodology/Approach: Due to the complex nature of market information that influence bonds, artificial intelligence could be accurate, robust and fast choice of bond price prediction method. Findings: Our results have reached a coefficient of determination higher than 95% in the training, validation and testing sets. Moreover, we proposed the nonlinear autoregressive network with external inputs using 50 year interest-rate swaps denominated in EUR and volatility index VIX as two external variables. Research Limitation/Implication: Our sample of daily prices between 4th January 2016 and 13th January 2021 (totally 1,270 trading days) suggest that both Levenberg-Marquardt and Scaled conjugate gradient learning algorithms achieved excellent results. Originality/Value of paper: Despite the fact that both learning algorithms achieved satisfying outcomes, implementation of an independent variable into the autoregressive neural network environment had no significant impact on prediction ability of the model. [ABSTRACT FROM AUTHOR]

This paper proposes swaps on two important new measures of generalized variance, namely, the maximum eigenvalue and trace of the covariance matrix of the assets involved. We price these generalized variance swaps for Barndorff-Nielsen and Shephard model used in financial markets. We consider multiple assets in the portfolio for theoretical purpose and demonstrate our approach with numerical examples taking three stocks in the portfolio. The results obtained in this paper have important implications for the commodity sector where such swaps would be useful for hedging risk. [ABSTRACT FROM AUTHOR]

Developing Asia experienced a sharp surge in foreign currency reserves prior to the 2008-9 crisis.The global crisis has been associated with an unprecedented rise of swap agreements betweencentral banks of larger economies and their counterparts in smaller economies. We explorewhether such swap lines can reduce the need for reserve accumulation. The evidence suggeststhat there is only a limited scope for swaps to substitute for reserves. The selectivity of the swaplines indicates that only countries with significant trade and financial linkages can expect accessto such ad hoc arrangements, on a case by case basis. Moral hazard concerns suggest that theapplicability of these arrangements will remain limited. However, deepening swap agreementsand regional reserve pooling arrangements may weaken the precautionary motive for reserveaccumulation.

The paper analyses the importance of the development of clearing in the Republic of Serbia. The primary role of clearing houses is to ensure the performance of derivative contracts. Clearing houses are institutions that are necessary for the functioning of derivative exchange and the part of the OTC derivative market. High uncertainty in business reflected in changes in prices, exchange rates, interest rates, climatic conditions, etc. led to the development of the term contracts trading and the need to develop a clearing system. In Serbia, despite the established legal requirements trading in standardized derivative contracts did not come to life in practice. Based on the findings in this paper, the underlying reason for the absence of a developed derivative market lies in an inadequate clearing system.

Transactions with futures and other derivatives began their development in the XIX century on the exchanges in USA and other developed countries, but financial market in Serbia is still underdeveloped with exchange materials, volumes and number of participants. Investors on the Belgrade Stock Exchange mostly trade with stocks and government bonds. Also, Agrar Product Novi Sad has organized only spot trading of agricultural products. The paper goal is to present all relevant assumptions and significance of derivative trading development in Serbia with discussion about choice to start derivative trading on the already existing exchanges or to establish a new futures exchange that is going to be specialized for derivative trading. As the research method authors use content analysis and comparison of significant national and foreign literature with analyses of trading volumes on international and domestic exchanges. Authors recommend that Agrar Product Novi Sad be the first in expansion of market listing with commodity futures and options. On this way market is going to be deeper, creating efficient mechanisms for investor's protection from price risks, creating conditions for safer and long term production planning, with increase in market attractivity that could set the Agrar Product Novi Sad as a leader in commodity derivative trading in the South-East Europe.

In this paper, we consider volatility swap and variance swap when the underlying asset is described by a process with multiple stochastic volatility models. The model considered in this paper is the multi-factor Heston stochastic volatility model. We obtain pricing formulas for the weighted variance swap and approximate expressions for the weighted volatility swap. The bounds of the arbitrage-free variance swap price are also found. The proposed pricing formulas are easy to compute in real time and can be applied efficiently for practical applications. We study the problem of hedging volatility swap with variance swap. We also determined the optimal amount of the underlying asset that has to be held for minimizing the hedging error by taking positions in options and weighted variance swap. From the numerical analysis, a couple of important features of the usefulness of the multi-factor Heston stochastic volatility model are discussed. [ABSTRACT FROM AUTHOR]

Antecedentes: El riesgo de longevidad, definido como la posibilidad de que las personas sobrevivan más allá de lo esperado, tiene el potencial de dañar a los sistemas de pensiones en general, ya que se traduce en la subestimación de reservas para cumplir obligaciones de pago futuro. Sin embargo, este fenómeno tiene una connotación positiva para los proveedores de seguros de vida, ya que al realizarse el riesgo de longevidad, habría un diferimiento en sus obligaciones financieras.Metodología: En este artículo se propone un swap de longevidad como mecanismo para reducir la exposición al riesgo de longevidad, usando el hedge natural de las posiciones respecto a la longevidad de las dos instituciones mencionadas. Para su aplicación a las obligaciones pensionarias del gobierno federal mexicano, se modificó el método general de estructuración y valuación de este tipo de instrumentos con la inclusión de un índice de longevidad proporcional y de una variable de monetización.Resultados: Estas modificaciones permiten una utilización más amplia del método referido, que puede ser aplicado en sistemas con un número de pensionados creciente, como el derivado de la reforma de 1997 en México. Adicionalmente, se propone, analiza y simula un swap de longevidad de 50 años entre el gobierno federal y un consorcio de aseguradoras y reaseguradoras de vida, cuyo costo ex post para el gobierno federal se estima en 1.6 miles de millones de pesos de 2017.Conclusiones: El swap de longevidad propuesto le da una cobertura notable a los flujos contingentes del gobierno federal mexicano, no obstante, se tiene que considerar el costo, en el cual existe un recargo proveniente del potencial comportamiento de la longevidad.

Background: Interventions targeting the nutritional quality of grocery shopping have the potential to help improve diet and health outcomes., Objective: This study aims to assess the feasibility and acceptability of receiving advice on healthier food purchases through SwapSHOP, a behaviorally informed smartphone app that allows users to scan barcodes of grocery products from the United Kingdom, providing nutritional information and personalized swap suggestions to encourage healthier purchases., Methods: We randomized adult volunteers in a 6-arm parallel-group controlled feasibility trial. Participants used the SwapSHOP app to record their grocery shopping during a 2-week run-in period and were individually randomized in a 3:1 ratio to either intervention or control arms within 3 strata related to a nutrient of concern of their choice: saturated fat (SFA), sugar, or salt. Participants randomized to the intervention received the SwapSHOP app with a healthier swap function, goal setting, and personalized feedback. Participants in the control group were instructed to use a simpler version of the app to log all their food purchases without receiving any guidance or advice. The primary outcome was the feasibility of progression to a full trial, including app use and follow-up rates at 6 weeks. The secondary outcomes included other feasibility outcomes, process and qualitative measures, and exploratory effectiveness outcomes to assess changes in the nutrient content of the purchased foods., Results: A total of 112 participants were randomized into 3 groups: SFA (n=38 intervention and n=13 control), sugar (n=40 intervention and n=15 control), and salt (n=5 intervention and n=1 control, not analyzed). The 2 progression criteria were met for SFA and sugar: 81% (30/37) and 87% (34/39) of intervention participants in the SFA and sugar groups, respectively, used the app to obtain healthier swaps, and 89% (68/76) of intervention participants and 96% (23/24) of control participants completed follow-up by scanning all purchases over the follow-up period. The process and qualitative outcomes suggested that the intervention was acceptable and has the potential to influence shopping behaviors. There were reductions of -0.56 g per 100 g (95% CI -1.02 to -0.19) in SFA and -1 g per 100 g (95% CI -1.97 to -0.03) in total sugars across all food purchases in the intervention groups., Conclusions: People were willing to use the SwapSHOP app to help reduce sugar and SFA (but not salt) in their grocery shopping. Adherence and follow-up rates suggest that a full trial is feasible. Given the suggestive evidence indicating that the intervention resulted in reductions in sugars and SFA, a definitive trial is necessary to target improvements in health outcomes., Trial Registration: International Standard Randomised Controlled Trial Number ISRCTN13022312; https://doi.org/10.1186/ISRCTN13022312., (©Carmen Piernas, Charlotte Lee, Alice Hobson, Georgina Harmer, Sarah Payne Riches, Michaela Noreik, Susan A Jebb. Originally published in JMIR mHealth and uHealth (https://mhealth.jmir.org), 11.01.2024.)

In this paper we study the effect that mean-reverting components in the arithmetic dynamics of electricity spot price have on the price of a call option on a swap. Our model allows for seasonal effects, spikes, and negative values of the price of electricity. We show that for sufficiently large delivery periods of the swap contract, the error that one makes by neglecting some of the mean-reverting processes affecting the spot price evolution converges to zero. The decay rate is explicitly calculated. This is achieved by exploiting the additive structure of the electricity price process in order to determine an explicit closed-form formula for the price of the call on a swap. The theoretical analysis is then illustrated via a numerical example.

The fertilizer swaps market is a potential tool to protect against fertilizer price risk. The swaps evaluated here are cash settled using The Fertilizer Index. Hedge ratios and hedging effectiveness are calculated for urea and DAP diammonium phosphate (DAP)) swaps. Urea and DAP swaps perform poorly as a hedging tool over a one-week horizon. As the hedging horizon increases, the hedging effectiveness of swaps improves. The swaps are more effective in mitigating risk across ocean freight routes than across inland routes. The limited hedging effectiveness is due to high spatial basis risk in fertilizer markets. [ABSTRACT FROM AUTHOR]

Copyright of Financing is the property of Financing and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Information extracted from financial derivatives on interest rates is commonly used to forecast movements in interest rates. However, such an extraction generally assumes that agents are risk-neutral, which is not necessarily the case. Accordingly, it might be useful to account for the agents' risk-aversion when doing these forecasts, which one can implement by adding a risk-correction. In this context, we use TIIE-28 swaps to forecast changes in monetary policy in Mexico, using a set of financial variables to account for the risk-correction. We assess whether models with a risk-correction outperform the TIIE-28 swaps rates, and find that the in-sample explained variability improves when using a risk-correction. Centrally, we document that our main model's out-of-sample forecasts are similar for short horizons (3-month), and statistically significantly better for longer horizons (9 to 24-month), compared to the direct use of TIIE-28 swaps interest rates. [ABSTRACT FROM AUTHOR]

Background: Offering consumers the opportunity to swap to lower-salt foods while shopping has potential to reduce salt intake. Offering a wider range of alternatives which are much lower in salt could increase the magnitude of salt reduction gained but may interfere with consumers' engagement and willingness to accept swaps.Objectives: To compare the salt reduction from offering swaps to a similar product but with minimally less salt to offering swaps with a substantial salt reduction including a range of alternative foods.Methods: In an experimental, randomised trial conducted in a virtual online supermarket, participants with high blood pressure were asked to buy 12 items of food. One group was offered similar alternatives with 5-20% less salt (LS swaps); and the other group was offered these LS swaps and alternatives with >20% less salt (MLS swaps). The primary outcome was the change in salt density of the shopping basket (g/100g) from initially selected items, to the final items chosen.Results: 947 participants completed the task and were included in the analysis. There was a significant reduction in salt content of the final selected shopping basket in both groups; with a significantly greater reduction in the group offered LS + MLS swaps (-0.09g/100g, 95% C.I. -0.10, -0.07; p < 0.001). The proportion of swaps accepted was the same in both groups and the mean salt reduction per swap accepted in the group offered LS + MLS swaps was more than double that of the group offered LS swaps alone. 30% of MLS swaps accepted were from a different food subcategory.Conclusions: Offering alternative products with a large reduction in salt, including potentially dissimilar products, does not decrease acceptability and leads to significantly greater reductions in the salt content of the shopping basket.Trial Registration: ISRCTN, ISRCTN91306993. Registered 5th February 2018 - retrospectively registered. https://www.isrctn.com/ISRCTN91306993. [ABSTRACT FROM AUTHOR]

Online systems that allow employees to pre-order their lunch may help reduce energy intake. We investigated the acceptability of a pre-ordering website for a workplace canteen that prompts customers to swap to lower-energy swaps and the factors influencing swap acceptance. Employees (n = 30) placed a hypothetical lunch order through a pre-ordering website designed for their canteen while thinking aloud. Semi-structured interview questions supported data collection. Data were analysed using thematic analysis. Acceptability was generally high, but potentially context dependent. Practical considerations, such as reminders to pre-order, user-friendliness, provision of images of menu items and energy information while browsing, an ability to reserve pre-ordered meals, and a swift collection service facilitated acceptability. The restrictive timeframe within which orders could be placed, a lack of opportunity to see foods before ordering, and prompts to swap being perceived as threatening autonomy were barriers to acceptability. Swap acceptance was facilitated by the provision of physical activity calorie equivalents (PACE) information, and swap similarity in terms of taste, texture, and expected satiety as well as the perception that alternatives provided meaningful energy savings. Online canteen pre-ordering systems that prompt lower-energy swaps may be an acceptable approach to help reduce energy intake in the workplace.

Transactions with futures and other derivatives began their development in the XIX century on the exchanges in USA and other developed countries, but fnancial market in Serbia is still underdeveloped with exchange materials, volumes and number of participants. Investors on the Belgrade Stock Exchange mostly trade with stocks and government bonds. Also, Agrar Product Novi Sad has organized only spot trading of agricultural products. The paper goal is to present all relevant assumptions and signifcance of derivative trading development in Serbia with discussion about choice to start derivative trading on the already existing exchanges or to establish a new futures exchange that is going to be specialized for derivative trading. As the research method authors use content analysis and comparison of signifcant national and foreign literature with analyses of trading volumes on international and domestic exchanges. Authors recommend that Agrar Product Novi Sad be the frst in expansion of market listing with commodity futures and options. On this way market is going to be deeper, creating effcient mechanisms for investors protection from price risks, creating conditions for safer and long term production planning, with increase in market attractivity that could set the Agrar Product Novi Sad as a leader in commodity derivative trading in the South-East Europe.

With the development of global markets and the expansion of opportunities for companies, there is a need for careful, efficient and prudent risk management. Hedging reduces the uncertainty of future financial flows and contributes to strengthening financial management. The purpose of this research is to study the trends and possible hedging measures to develop the derivative financial instruments (DFI) to hedge the risk of companies in Russia and Kazakhstan. The analysis has revealed that currently a limited number of Russian and Kazakh companies use risk hedging tools. The main reasons are the underdevelopment of financial instruments market, the relatively high cost of their use, and lack of the financial instruments market transparency. However, in the past two years, there has been an increase in trading volumes in options on the stock derivatives market. The study has resulted in a set of measures aimed at developing the market of interestbearing derivatives, improving regulatory impact on the over-the-counter (OTC) market of the DFI, and reducing the hedging transactions costs. [ABSTRACT FROM AUTHOR]

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At the end of XIX century futures exchange emerged, in the early 70-ies XX century - option exchange of financial derivatives. These exchanges gave a huge boost to the development of market of the operations with derivative financial instruments. In fact, in the 1970-1980-ies a new market segment was actually formed - the stock and financial derivatives. Trade in financial derivatives began in the OTC market, which accounts for most of the trade of derivatives. Today volumes of the OTC market of derivatives are several times greater than the volume of world trade and world GDP. From 2000 to 2007 derivative OTC market grew rapidly. In 2007-2008 there is a decline in trade of derivatives, but already in 2009 the world market of OTC derivatives returned to pre-crisis growth rates. Among all the instruments of the OTC market of derivatives swaps on interest rates stand out in the volumes, which even in the crisis of2007-2008 slightly, but increased. Analysis of indicators of the global OTC market of derivatives reveals the predominance of instruments on interest rates: their share in the total world market in 2012 amounted to about 77%. If we consider the structure of the OTC market of derivatives on type contracts, in 2012 most of the contracts (66%) belonged to the swaps. As regards the structure of the world market of exchange derivatives, in 2012 the options had the largest share - 54 %, futures accounted for 46 %. Among all the exchange instruments on interest rates held 92%.

At the end of XIX century futures exchange emerged, in the early 70-ies XX century - option exchange of financial derivatives. These exchanges gave a huge boost to the development of market of the operations with derivative financial instruments. In fact, in the 1970-1980-ies a new market segment was actually formed - the stock and financial derivatives. Trade in financial derivatives began in the OTC market, which accounts for most of the trade of derivatives. Today volumes of the OTC market of derivatives are several times greater than the volume of world trade and world GDP. From 2000 to 2007 derivative OTC market grew rapidly. In 2007-2008 there is a decline in trade of derivatives, but already in 2009 the world market of OTC derivatives returned to pre-crisis growth rates. Among all the instruments of the OTC market of derivatives swaps on interest rates stand out in the volumes, which even in the crisis of2007-2008 slightly, but increased. Analysis of indicators of the global OTC market of derivatives reveals the predominance of instruments on interest rates: their share in the total world market in 2012 amounted to about 77%. If we consider the structure of the OTC market of derivatives on type contracts, in 2012 most of the contracts (66%) belonged to the swaps. As regards the structure of the world market of exchange derivatives, in 2012 the options had the largest share - 54 %, futures accounted for 46 %. Among all the exchange instruments on interest rates held 92%.

Background: Longevity risk, defined as the possibility of people outliving its expected life span, hurts pension systems because it implies a potential underestimation of reserves kept in order to fulfill future liabilities. Nevertheless, this has a positive connotation for life insurers, given that these companies may face a deferral in their liabilities when people live longer than expected. Methods: In this research paper, a longevity swap is proposed as an alternative to manage longevity risk, using the natural hedge arising from opposite positions regarding the same risk. In order to apply it to the management of the longevity risk faced by Mexico's federal government, some changes were made in the general framework used to construct and value this kind of derivatives, adding a proportional longevity index and a monetization variable. Results: These modifications give the referred framework a wider scope; e.g., it can be applied to systems with growing number of pensioners, as the one created by the Mexican reform of 1997. Furthermore, a 50 year longevity swap between the Mexican government and a syndicate of life insurers and reinsurers is proposed, analyzed, and simulated and an ex post cost of 1.6 billon of 2017 pesos for the federal government is estimated. Conclusions: Protection provided to the Mexican government by the proposed longevity swap is remarkable. However, its cost has to be considered, as it is biased by the expected longevity behavior. [ABSTRACT FROM AUTHOR]

Financial derivative instruments, which are created by financialexperts, play an important role in the world of high finance. To dealwith the risk, mainly price risk, these instruments have appeared andbegun to change and promote day in, day out. Their importance mayappear when it happens to them to be published more than basestock; great sum of money would be transferred by and ends bypaying the difference in price, not caring for contents of contract.This research paper tends to have a juridical analyse over theseinstruments. Explaining these instruments, first their legal naturewould be identified and then, juridical judgement would be inferred.Most of the instruments which are created to satisfy the requirementsof economic agents can be revised by law. May be, these instrumentsare misused, but this is incidental, as it may happen about otherlegitimate instruments like principle of commerce.