INDIA’s Stand under ESMA in the OTC market

I am re-posting one of my old post with the intention that many of my fellow mates wanted to know the implications of the European

Esma
Esma (Photo credit: SphotoE)

Securities and Markets Authority ESMA on India.

“The RBI and CCIL have expressed reservations and said they would be reluctant to apply for registration under Esma.”

India is “reluctant” to apply for third-country equivalence for the Clearing Corporation of India (CCIL) from the European Commission (EC), while it is also planning to mandate the central clearing of rupee foreign exchange derivatives, a scenario that could potentially force European banks to exit the most profitable part of their derivatives business in the country. Continue reading “INDIA’s Stand under ESMA in the OTC market”

The OTC Clearing and India’s stand under ESMA.

“The RBI and CCIL have expressed reservations and said they would be reluctant to apply for registration under Esma.”images

India is “reluctant” to apply for third-country equivalence for the Clearing Corporation of India (CCIL) from the European Commission (EC), while it is also planning to mandate the central clearing of rupee foreign exchange derivatives, a scenario that could potentially force European banks to exit the most profitable part of their derivatives business in the country.

On June 15, the European Securities and Markets Authority (Esma) is due to provide advice for the EC over whether India’s central counterparty (CCP) will be able to clear trades for European banks on July 15. Currently there is no framework within European Market Infrastructure Regulation (Emir) to enable clearing from non-equivalent CCPs. Continue reading “The OTC Clearing and India’s stand under ESMA.”

Chaos Theory in Financial Markets

Chaos theory attempts to explain the fact that complex and unpredictable results can and will occur in systems that are

Chaos Theory (film)

sensitive to their initial conditions. A common example of this is known as the Butterfly Effect. It states that, in theory, the flutter of a butterfly’s wings in China could, in fact, actually effect weather patterns in New York City, thousands of miles away. In other words, it is possible that a very small occurrence can produce unpredictable and sometimes drastic results by triggering a series of increasingly significant events.

Lets try to figure it out with Capitalism at a Cross Roads :

Here is the Preface

The Fed’s Dual Mandate and the Birth of Crybaby Capitalism: finding the butterfly Continue reading “Chaos Theory in Financial Markets”

Delusions and Bullet-proof Portfolio

In financial markets, craziness creates opportunity. It affects only prices, not values. And one of the craziest afflictions I fullsize_10know of is our faith in our ability to see the future. Indeed, there isn’t even an appropriate opposite to the word ‘foresight’ in the English language. So I’m going to make one up. And rather than build a portfolio based on the pretence we have foresight, let’s explore some ideas for building one that is robust to our fore-blindness.

Here are some things I think are true: