Cash Securities Research Articles

Securities financing and asset markets: new evidence

Abstract Using survey data on secured funding arrangements provided by broker–dealers for their clients—a class of contracts that includes bilateral repo—we document that financing rates, collateral haircuts, lending maturities, and position limits move strongly together over time and across asset classes. Liquidity of the underlying securities, as opposed to their volatility or credit risk, is the main driver of this behavior, with dealer balance-sheet constraints also playing a role in the funding of less-liquid security types. A simple model of dealer–client interaction rationalizes these findings. Instrumenting with changes in market conventions, we find that funding conditions had little effect on cash securities markets between 2011 and 2019, but the tightening of terms during the market stress of early 2020 likely impaired liquidity and reduced asset returns to some degree.

Digital Ruble as a Factor in Strengthening the Monetary Sovereignty of the State

The development of technology in the modern world has led to a change in the form of money from commodity, metal and paper to digital. The digital ruble opens up new opportunities and prospects for the state in the field of financing public tasks and functions. One of these is the opportunity to solve the problem of cash security in the public sector of the economy, while avoiding inflation, as well as dollar and export-commodity dependence of the national currency. The article proposes to create two digital platforms based on the digital ruble: a closed one for servicing government payments and an open one for payments made on private consumer markets; the rules for converting the digital ruble are considered; the position on the digital ruble as a new revenue source for financing government purposes is substantiated. As a result, it is noted that the use of the full potential of the digital ruble is a factor that strengthens the internal monetary sovereignty of the state.

MiFID II and the Regulation of Multilateral Trading in OTC Derivatives: Is the OTF Fit for Purpose?

Abstract This article identifies barriers to the complete implementation of the organized trading facility (OTF) as a new category of trading venue under the Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II). It argues that attempts to reconcile the competing claims of incumbent regulated markets and dealer banks operating broker crossing networks in the cash securities markets led to a market design that is not suitable for the over-the-counter (OTC) derivatives markets. The result has been that multilateral trading in the wholesale secondary markets has not been incorporated in trading venues, as was intended, and that changes that are better aligned to market requirements are needed. These include reform of requirements transposed from the cash securities markets, such as standardized fee structures, and relaxation of restrictions on interactions between an OTF and other OTFs or systematic internalizers.

ANALISIS SISTEM INFORMASI AKUNTANSI PENERIMAAN DAN PENGELUARAN KAS UNTUK PERENCANAAN DAN PENGENDALIAN KEUANGAN PADA RUMAH SAKIT MITRA SEJATI

Abstract
 The objective of this research was to analyze the accounting information system for cash receipts and disbursements for financial planning and control at Mitra Sejati Hospital Medan. The problem raised in this research is that the accounting information system at Mitra Sejati Hospital has not been effective, and there are still improvements in the system. The object of this research is Mira Sejati Hospital. This research is a qualitative research and uses descriptive analysis with a flowchart approach. Methods of data analysis by collecting, analyzing data in the application of accounting information systems in Mitra Sejati hospital. The results of the research indicate that a good accounting information system has played a role in improving the internal control system for cash receipts. This can be seen from the cash receipts accounting information system whose system is online in collaboration with third parties. So that the accounting information system can guarantee cash security implemented by Mitra Sejati Hospital so that it plays an important role in improving the internal control system in terms of providing and providing accurate and reliable information on cash receipts.
 

CERTAIN ASPECTS OF TRANSFER OF PENSIONS OF PERSONS DISCHARGED FROM MILITARY SERVICE

The article examines some aspects of the recalculation of the pension of persons discharged from military service in connection with the increase in cash benefits for certain categories of servicemen. It is established that in connection with the increase in cash security of the relevant categories of servicemen from January 1, 2018, the right of persons discharged from military service to adequate pension provision was unlawfully restricted by applying only three components of cash benefits: salary; salary for military (special) rank; interest allowance for years of service in the relevant or similar position held by the person on the date of dismissal (on the date of business trip to work in public authorities, local governments or their bodies, enterprises, institutions, organizations, higher education institutions). It is established that the normative provision of the right to recalculation of pensions of persons discharged from military service was brought in line with international standards, the content of the principles of the rule of law and legality, the requirements of legislative technique only from March 5, 2019 – the date of entry into force of a court decision and invalid certain provisions of the resolutions of the Cabinet of Ministers of Ukraine, which limited the guarantees of the right of persons discharged from military service to recalculate pensions in connection with increasing cash benefits of relevant categories of servicemen, enshrined in the Law of Ukraine “On pensions of persons discharged from military service, and some other people”. The actual restoration of the right of persons discharged from military service to recalculate their pensions in connection with the increase of cash security of the relevant categories of servicemen, taking into account all its (cash) components occurs only in court as a result of court decisions recognizing illegal actions (inaction) of the Pension Fund of Ukraine and their obligation to recalculate the pension of a former serviceman, taking into account the relevant salaries, military (special) rank, interest allowance for years of service, monthly additional types of cash benefits (allowances, surcharges, promotions) and bonuses in the sizes established by the legislation.

Documentation of Traditional Knowledge on “Coffee” (<i>Coffea arabica</i>) in Jimma, Ilubabor and West Wollega Zone

Coffee, of genus Coffea, is a member of Rubiaceae family that consists of more than 400 species and is mostly grown in the tropical and subtropical regions. The major coffee production systems include forest, semi-forest, garden and plantations. Coffee is intercropped with other companion crops or leguminous shade trees as low-cost production options to diversify food and cash security. Rainfall is the most important factor governing the distribution of coffee farming and wild coffee forests in Ethiopia. The distribution of rainfall varies greatly across Ethiopia, according to season, altitude and physical features of the landscape. Coffee is made from coffee bean and known to have the properties of keeping drinkers alert and awake. The use of coffee leaves to make tea has long been a tradition in West Sumatera, Ethiopia, Jamaica, India, Java and South Sudan. The main objective of this study is to document the traditional knowledge of people on “Coffee” (Coffea arabica) in Jimma, Ilubabor and West Wollega Zone. This study was conducted in Jimma, Elubabor and West Wollega Zone from January - November, 2019. Multistage sampling technique was employed to collect traditional knowledge of people on Coffea arabica. Primary data were collected from the respondents by distributing questionnaires and focus group discussion. The collected data were analyzed by using SPSS (statistical package for social sciences). The result of the study indicates that: the type of land preferred for the production of Coffeaarabica was semi forest whereas the most preferable soil was sand soil. The type of land preferred for the production of Coffeaarabica was semi forest whereas the most preferable soil was sand soil. Summer and spring were preferable seasons by the farmers of the study area for coffee production. Cordia Africana, Croton macrostachyus, Ziziumguaniense and Acacia abyssinica were very relevant for coffea arabica shade. The respondents manage the disease by removing the affected part of Coffea arabica tree and burning it. Coffea Arabica also has cultural and spiritual values.

Канцелярские служащие главных судов Правобережной Украины: принципы формирования и кадровый состав (1797-1831 гг.)

В статье рассматриваются вопросы принципов формирования и кадрового состава корпуса канцелярских служащих главных судов Правобережной Украины в конце XVIII – первой трети XIX вв. Эффективность работы апеляционно-ревизионных губернских главных судов зависела, в том числе, и от кадрового состава: образованности, имущественного положения, желания работать, возможностей карьерного роста канцеляристов. Исключительно польским шляхтичам (в других регионах империи канцеляристами могли быть представители иных сословий) предоставлялась возможность проходить службу канцеляристами. Приезжих чиновников, которые организовывали работу на начальном этапе российского правления, фактически вытесняли из учреждений. Как правило, канцеляристы происходили из неимущего дворянства, вынужденные жить за сравнительно невысокое жалованье.

The Liquidity Hierarchy in the US Treasury Cash and Futures Market

This article describes the complex nature of liquidity in the markets for US Treasury cash bonds and exchange-traded futures contracts. Using a risk-adjusted measure of trading volume, we find that, although overall volume is greater across all cash securities than across all futures contracts, certain futures contracts are more liquid than certain cash securities, and vice versa. Furthermore, futures contracts play a special role in liquidity-challenged environments. Finally, average trade size, in risk terms, is much higher for cash securities than for futures contracts. These findings can be useful to investment practitioners, who constantly weigh the relative values of various securities against their liquidity. TOPICS:Fixed Income and structured finance, futures and forward contracts, fixed-income portfolio management, exchanges/markets/clearinghouses Key Findings • This article combines the relatively new regulatory data on Treasury cash transactions from FINRA with futures transaction data at the CFTC to describe a liquidity hierarchy in the US Treasury market. • Although overall risk volume is greater across all cash securities than across all futures contracts, the liquidity hierarchy is more complex, with certain futures contracts more liquid than certain cash securities and vice versa. • Futures contracts play a special role in liquidity-challenged environments. The relative amount of risk traded through futures contracts is higher on days with large price movements and is larger at times outside of US trading hours.

Estimation of the money supply of Ukraine: state, structure, trends

Methods. The results are obtained through the use of the following methods: analysis and synthesis – in determining the volume, structure and dynamics of money supply; theoretical and analytical – in characterizing the main indicators studied in the article, in particular the money supply, monetary base, monetization ratio, velocity of money, monetary multiplier; generalization – in drawing conclusions and proposing ways to improve monetary policy. Results. The approaches of various scientists to the essence of the economic category of “money supply” are studied. It is determined that the money supply should be understood as the total set of money reserves in all forms, and which can be disposed of by the subjects of money circulation at a given time. The analysis of the dynamics of monetary aggregates and monetary base is carried out, it is shown that their numerical values have a determining value in the formation of a holistic view of the monetary system of Ukraine. On the basis of the initial data, the corresponding calculations are carried out, and a number of indicators are defined, which allows to estimate the real state of affairs in the structure of money supply more realistically and in detail. In particular, the coefficient of monetization of the economy as an indicator of its cash security is characterized. The indicator of the velocity of money circulation is developed and analyzed as one that characterizes the intensity of the use of the corresponding stock of money necessary for payments for goods and services. The indicator of the monetary multiplier is characterized, by means of which it is possible to carry out the control of dynamics, structure of money supply and inflation rate. Suggestions for certain ways to improve the monetary policy of the state are outlined. Novelty. It is determined that the money supply and the monetary base are complementary elements through which the formation of the multiplier effect occurs, which leads to an increase in the non-cash component of the money supply. Practical value. The results of the study can be used in scientific and educational work at higher education institutions. Based on the assessment of the state of the money supply, its structure and dynamics, ways to improve the monetary policy of the state are proposed.

The Liquidity Hierarchy in the U.S. Treasury Market

We describe the complex nature of liquidity in the markets for Treasury bonds and futures contracts. Using a risk-adjusted measure of trading volume, we find that, while overall volume is greater across all cash securities than across all futures contracts, certain futures contracts are more liquid than certain cash securities, and vice versa. Furthermore, futures contracts play a special role in liquidity-challenged environments. Finally, average trade size, in risk terms, is much higher for cash securities than for futures contracts. These findings can be useful to investment practitioners, who constantly weigh the relative values of various securities against their liquidity.

Research on Electronic Cash Security Technology in Electronic Commerce

With the rapid development of electronic commerce, payment is becoming the focus problem of electronic commerce. Electronic cash has become the ideal method of electronic payment for it is able to realize fair, secure, effect electronic transacts. Along with electronic commerce development, electronic cash payment systems are also gradually developing. However, most electronic cashes are facing the security issues. Moreover, the amount of money each electronic cash card contains is fixed at issuance and is available only within a specified system. The key technology is digital signature technology, including blind signature, group signature, and ring signature. The paper researches the security problems of electronic cash in information safety and e-commerce, and discusses the electronic payment and the security problem, which is regarded as the foundation of electronic commerce. The main factors are given that causes security problems of electronic payment, and suggests corresponding precautionary measures.

What Drives the Tracking Error of Hedge Fund Clones?

Hedge fund clones provide a liquid, efficient, and transparent alternative to investing in hedge funds. As a group, however, their recent performance has been disappointing, despite the large variation in the replication methodologies used. The author investigates hedge fund clones’ tracking errors and finds that contrary to common belief, the reliance on historical data to “reverse engineer” hedge fund allocation is not the primary cause. Instead, the author identifies two important drivers of tracking errors of hedge fund clones. One is changes in marketwide liquidity levels as measured by the basis between derivatives and cash securities. The second is biases in measuring the returns that arise due to attrition among hedge funds that affect the performance of commonly used hedge fund indices. Together, they account for about half of the variation in hedge fund clones’ tracking errors over time. <b>TOPICS:</b>Real assets/alternative investments/private equity, quantitative methods, financial crises and financial market history, performance measurement

A New E-cash Scheme Based on a Trapdoor Hash Function

As online shopping has become more popular because of recent changes in consumption patterns, many electronic cash schemes have proposed. Electronic cash schemes generally utilize public key algorithms to maintain electronic cash security. However, public key algorithms use many computation resources, and make electronic cash schemes inefficient for mobile devices to compute. Furthermore, the denominations of electronic cash are fixed, and the electronic cash spending date is hard to record. It will cause the lack of flexibility while applying. This research proposes a new electronic cash scheme that utilizes trapdoor hash function technology. The proposed scheme not only allows users to apply for desired denominations of electronic cash and to record transaction dates, but also decreases calculation costs, that is, our scheme can be implemented efficiently in all mobile devices.

Internal regulations and procedures for financial trading units

It is the purpose of this paper to suggest proactive policies and procedures for the adequate management of trading risk exposure within financial operating units. As such, this paper discusses the relevant risks that trading units should deal with and highlights the main obstacles to the launching of successful trading activities in emerging economies, and thereafter provides a number of viable solutions along with recommended internal regulations and procedures. The objective of this paper is to share with financial markets’ participants, regulators and policy makers some of the author's real-world experiences and observations as a derivatives trader and later as a trading risk manager in emerging markets. The endeavour here is to provide several robust guidelines that can assist both emerging and developed markets in the establishment of sound trading units within a prudential framework of rules and policies. The guidelines and internal regulations that are discussed in this work will be of value to financial entities, regulators and policy makers operating mainly within the context of emerging markets. A number of feasible key risk management rules and procedures that should be considered in strengthening trading units are examined and adapted to the specific needs of emerging markets. This is with the objective of setting up a practical framework for trading risk measurement, management and control reports. The suggested viable guidelines and procedures can be implemented in almost all emerging economies, if they are adapted to correspond to each market's initial level of sophistication. The main contribution of this paper is in the introduction of practical trading risk management internal regulations and procedures. The trading risk management internal rules that are discussed in this work will aid financial markets’ participants, regulators and policy makers in founding sound and up-to-date policies to handle trading risk exposures with special emphasis on foreign exchange trading activities. Although a substantial literature has examined the statistical and economic meaning of trading risk models, this paper provides pragmatic guidelines and internal regulations that can be applied for trading risk management in financial markets. This paper fills a gap in the risk management literature by providing a practitioner's views on how to set-up sound and effective trading units, particularly from the perspective of emerging markets. This paper will be of value to those interested in founding a successful and sound trading environment of cash securities and derivative products in emerging and developed markets.

Global portfolios should be optimized in excess, not total returns

AbstractWhen constructing portfolios, practitioners must take opportunity cost into account and view returns as excess, not total returns. Using total returns in a means–variance optimization—a remarkably common error—introduces a bias that will cause “optimal” portfolios to overweight domestic cash securities at the expense of higher‐risk instruments and instruments invested abroad. The original work on modern portfolio theory made little mention of excess versus total returns in optimization in part because the theory assumed one was only choosing between risky assets and that all of the assets were denominated in the same currency. Thus, those who refer to the original version of the theory could easily misapply it when considering assets in different currency zones. This paper seeks to demonstrate the problems and biases inherent in using total returns versus excess returns in means–variance optimization.

Banks and Retailing

The philosophy behind banks' current High Street profiles is based on four main guidelines: the need for cash movement; security of staff/money from robberies; indication of stability/substance; and wide facility for in‐/out‐payments. This has led to a perception of bank branches as cold, unfriendly places, discouraging customer visits. The retailing approach will impact on branch style and structure, possibly creating individual, business‐specific banks within banks which can deal with both the heavy user cash customer and the high net worth customer, in the same way that aircraft travel is sold as business, economy and first class services through the same aircraft and facilities. With ATMs and home banking (such as the Minitel system being pioneered in France) reducing cash security requirements, bank branches will be able to exploit the freedom from counter barriers to make customers feel more welcome. Finally staff must be trained and helped, through incentives, to take a more positive and welcoming attitude.