Direct Market Access Research Articles

Does Tanzania Succeed in Sectoral Cooperation among Cooperatives in the Post- Covid -19 Recovery?

COVID-19 disrupted the global economy and escalated poverty across countries, Tanzania inclusive. In noting the sixth cooperative principle, cooperation among cooperatives with inclusions of other economic sectors remains inevitable to fight this disruption. The present study examined socio-economic cooperation among cooperatives during the post-Covid-19 era. The actor websites and Mobile phone interviews to collect appropriate data. Data were analysed by using content analysis approach. This study found that there is a direct description of how the sixth principle commensurate with Co-operative Societies Act No. 6 of 2013. Partners were establishing cooperation -born of the Tanzania National Co-operative Bank-NCB. Other cooperation aimed to improve direct export crops and market access between Tanzania cooperative development commission and Tanzania trade development authority. The the expansion of Cooperative education. The promotion of coops insurance education Co-operatives are recommended to advocate the purchase of shares, collective securities, and bonds to widen cooperation with other co-operators. Policymakers, regulatory authorities, and stakeholders should adhere to a Covid-19 "new normal" by revieweing laws and regulations.

HTA107 Direct Market Access for Medecines: Analysis of Eligible Products in France and Comparison With Current German System

HTA107 Direct Market Access for Medecines: Analysis of Eligible Products in France and Comparison With Current German System

Medicinal plant cultivation for sustainable use and commercialisation of high-value crops

Many traditional healing systems are based on natural biological resources, and there is a general shift in most parts of the world towards natural medicine, with direct implications on the demand and supply of medicinal plants. This review highlights the economic importance of medicinal plants, their contribution to healthcare systems, and potential opportunities for rural economic development through cultivation. A systematic literature review with specific search terms related to medicinal plants was used to collect scientific and non-scientific information from peer-reviewed literature and grey literature databases. The findings indicate that trade in medicinal plants is increasing, and although they are considered minor crops compared to major food crops, their value is among the highest in the list of traded plants globally. The trade also serves as a revenue source for many rural livelihoods, with women playing a significant role. Medicinal plants contribute to primary health care in many developing countries, and they are also an essential source of modern drug discovery. Cultivation of medicinal plants offers emerging rural farmers an opportunity to grow these plants as new and alternative crops, thus reducing unsustainable wild harvesting and competition with established commercial farmers who mostly focus on food crops. Furthermore, medicinal plant cultivation should be promoted as one of the options for local economic development and sustainability through job creation, the revival of the rural economy, and income generation for small businesses, such as the transport businesses, involved in the value chain. Land accessibility, financial resources, and direct market access for rural communities can elevate their contribution to the industry. Formalisation of the lower levels of the medicinal plant trade is also recommended. Significance: Cultivation is a viable option for biodiversity conservation of medicinal plants and ensuring a goodquality supply of plant materials. Cultivation of medicinal plants – a source of natural products used in product development – can contribute to job creation, income generation, and rural economies in developing countries. This review underlines the importance of medicinal plants in product development, the contribution of the industry to economies of different countries, and the potential for cultivation.

Climate-Smart Villages in Southeast Asia: The Pivotal Role of Seed Systems in Rice-Based Landscapes

Given the aggravating nature of climate change impacts, rice farming will increasingly rely on improved resilience to climate variability and extremes. To this end, the climate-smart village (CSV) approach was developed to address specific challenges of smallholder farmers. Within Southeast Asia, the CSV approach has so far been applied in Myanmar, Lao PDR, Cambodia, as well as in Vietnam and the Philippines where national programs have taken it up and established multiple CSVs. Despite distinct climatic conditions, all these CSVs have rice-based landscapes as a common denominator. This article focuses on the improvement of rice seed systems as the core of introducing climate-smart agriculture (CSA) in these villages. The experience of a CSV in Lao PDR clearly shows community-based seed (CBS) systems as a viable CSV component. Moreover, the efficiency of CBS systems is enhanced when applied in combination with the following supporting climate-smart interventions: (1) training in improved crop and pest management through farmers’ field schools, (2) awareness raising through photo exhibits and seed fairs, (3) participatory variety selection, and (4) climate risk mapping as a means for targeted distribution of improved rice varieties. The study also explored direct market access for CSV products by advertising both the generic aspects of climate-smart adaptation strategies and the location-specific stories of smallholder farmers. To this end, the emerging online retail economy could offer viable avenues for highlighting specific aspects of food production in CSVs to different groups of consumers (e.g., the “buy local” preference in the domestic market and climate change concerns in the international market).

Connectivity costs and price efficiency: An event study

AbstractThis paper investigates the impact of changes in the speed and pricing of direct market access on market efficiency, as measured by the frequency, duration, and profitability of arbitrage strategies. Two natural experiments on the Eurex exchange are identified: an exchange‐wide improvement in technology reducing message latency, and a reduction in the direct exchange access fee. We analyze their impact on the trading of Euro Stoxx 50 Index futures and the Xtrackers Euro Stoxx 50 Ucits ETF. A decrease in the frequency and duration of arbitrages following both events is observed.

Of Bumping and Bending: Foreign Universities’ FDI Strategies in Malaysia

AbstractUniversities from varying institutional and geographical contexts have increasingly invested in offshore subsidiaries in the Malaysian private higher education sector. Literature on transnational education policy and management as well as economic‐geographic accounts of firms’ transnationalisation or public service provision have not investigated foreign providers’ direct investment and market access strategies in the higher education sector. This paper addresses these gaps, showing how and why foreign actors’ investment and market involvement in Malaysia have changed. Empirical data is drawn from qualitative interviews and policy documents. The research reveals that foreign universities have strategically modified their business partnerships and bi‐national accreditation to bypass and bend state regulation of market access as well as to restructure internal organisation and geographical configuration. The paper proposes conceptualising foreign higher education providers as transnationalising, reflexive networks within networks that respond to dynamic market access regulation by adopting firm‐like investment strategies.

An Autoethnographic Report on Freelance Employment in the Malaysian Oil and Gas Industry During Uncertain Economic Conditions

In this paper we present our study of the role of freelancers in the modern labour market, especially during times of economic downturns. Using an autoethnographic research approach, it presents the personal journey of Fathullah working as a consultant in the oil and gas industry in Malaysia. The study focuses on the impact of the 2014 oil price crash and his subsequent plight in taking his career forward during times of uncertainty. Based on the autoethnographic account, it explores various aspects of life as a freelancer such as the issues of job security and job satisfaction. Fathullah found that he enjoyed a different form of job security compared to the time when he was in regular employment, for he has direct market access and wider reach to organizations that require his skills. It follows that he also experienced better job satisfaction as a freelancer. This paper provides insights to aspiring job seekers, businesses in need of human capital and policy-makers aiming to modernize the labour market.

A distributed ledger based platform for community-driven flexibility provision

In this paper we propose and analyze a community-driven platform for flexibility provision based on a distributed ledger. We introduce and analyze the platform for the use case of a self-organized decentralized virtual power plant consisting of a local community of individual prosumers with photovoltaic-storages located on a low voltage feeder. Like a virtual power plant, it aggregates small-scale assets and is able to provide ancillary services in the form of active power provision to the electrical power system. However, the decentralized virtual power plant provides a direct flexibility market access of the distributed assets without the need for a third party. Thus, balancing group managers or system operators can directly interact with the distributed assets in an aggregated way without the need for an aggregator. The solution approach uses a heuristic algorithm for the coordination combined with a distributed ledger and democratic consensus within the community.We propose the concept in detail, describe the prototypical implementation based on a consortium Ethereum blockchain and discuss results of the proof-of-concept. Our numerous test runs with up to 20 participants showed that the coordinated flexibility provision, energy sharing and according financial settlement works in practice, but would need an upgrade concerning the smart-meter hardware for an implementation in the field. We analyze the impact of the coordination interval on the community self-sufficiency and determine that one minute intervals are enough to reach 96% of the optimum. We evaluate the storage and communication effort and conclude with suggestions for future improvements and other possible applications of the decentralized platform like aggregated flexibility coordination between balancing group managers and system operators.

Sharing Is Not Caring: Backward Integration of Consumers

A new type of player occurs in the sharing economy: a vertically integrated consumer who owns production facilities and has direct market access, often termed “active prosumer”. The prosumer faces a trade-off between market transaction cost and substantial strategic potential to influence both market demand and supply by her decisions. We discuss optimal marketing and production decisions in light of this trade-off. An empirical application to the German-Austrian electricity market demonstrates substantial incentives for active market participation by recently added decentralized renewables production. Prosumers can achieve considerable profit increases by switching roles of net market supplier or customer.

Public service obligations for air transport in the United States and Europe: Connectivity effects and value for money

Public service obligations (PSOs) are used by governments in many countries, including the United States and 11 countries in Europe, to mandate a minimum level of commercial air transportation service, especially for small or rural communities. This paper analyzes PSOs in these 12 countries for the year 2010 using the recently proposed Global Connectivity Index to measure direct and indirect market access and a novel subsidy database covering 90% of PSO movements in these countries to assess value-for-money.We show that PSO services represent about 2.5% of all commercial movements in the 12 countries analyzed, generating about 1% of these countries’ total air transport connectivity. Over all routes for which data was available, approximately USD$ 900 million was earmarked for PSO and air service discount provision in 2010, with average subsidies per movement ranging from about $700 to $3500. PSO market access and efficiency outcomes vary across the countries analyzed. Some countries, such as Germany and the United States, focus on providing network access for smaller communities, thereby creating not only point-to-point, but also onward connectivity, while others such as Norway, Sweden, and Ireland, predominantly aim at providing “lifeline services” that connect remote regions to a nearby economic center without providing onward connections.

MiFID II: Regulating High Frequency Trading, Other Forms of Algorithmic Trading and Direct Electronic Market Access

So is flash trading good or bad for the market? Michael Lewis, in his recent book Flash Boys – Cracking the Money Code, paints a far from positive picture of high frequency trading. Flash traders use such advanced techniques that the rest of the market is left trailing in their wake. But, as was to be expected, not everyone agrees with his analysis. The Markets in Financial Instruments Directive II (MiFID II), which will become binding on the financial sector in the EU/EER as per 3 january 2018, adopts a middle course: it does not prohibit high frequency trading, but it does subject it and other forms of algorithmic trading to specific supervision as they entail specific risks. High frequency trading and other forms of algorithmic trading are not alone in being subjected to a supervision regime in MiFID II. What is now the fairly common practice of investment firms in providing their clients with direct electronic access (DEA) to perform transactions is also subjected to a specific form of supervision. Providers of DEA are now required to ensure that this access complies with the appropriate systems and risk controls. The link between high frequency trading and other forms of algorithmic trading on the one hand and DEA on the other is dealt with later in this article. These are all important regulatory innovations as high frequency trading and other forms of algorithmic trading and DEA are not subjected to specific rules of supervision in MiFID I. Nonetheless, the rules in MiFID II are not entirely new. To a large extent they are based on and amplify the ESMA Guidelines entitled Systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities. However, as the rules have been formalised through inclusion in MiFID II, the supervision of flash trading and other forms of algorithmic trading now figures more prominently on the agenda of the supervisory authorities. This article discusses the themes noted above from the perspective of MiFID II/MiFIR.

MiFID II: regulating high frequency trading, other forms of algorithmic trading and direct electronic market access

This article analyses and discusses the new MiFID II rules on high frequency trading (HFT), other forms of algorithmic trading (AT) and direct electronic market access (DEA). In particular, it discusses the benefits and risks of AT, HFT and DEA, the MiFID II definitions of these terms, the scope of the rules, as well as the applicable substantive rules.

Connectivity Solutions in Automated Trading

Abstract The study analyzes the architecture and deployment of direct market access (DMA) solutions for automated trading of securities. It provides an overview of automated trading systems including: trading floor architecture, trading environment connectivity, and DMA solutions. Among a range of factors influencing operational capacities, round-trip latency has been recognized as the key quality differentiator of an automated trading floor. The study identifies potential opportunity costs due to latency levels as a major driver of technological progress in trading in highly liquid market conditions.

A Study on the ELW Market by Investor Types: Focused on DMA System

This paper focuses on the controversy about DMA (direct market access) system that facilitates ELW (equity linked warrants) transaction. We analyze trading profit/loss and such features in accordance with the investor type by the combination of trading counts and trading amounts. Especially, our analysis centers on whether brokerages’ providing DMA system contributes to the market expansion and DMA system serves as a profit-making expedient for the investors whose trading amount is large or trading frequency is high. Based on our empirical examination utilizing total ELW trading data from 2009 to 2011, the following implications are obtained as a result: Firstly, the growth of the ELW market mainly comes from the increased transactions by the investors accessing via DMA and there is no evidence that providing DMA system itself adds to the revitalization of overall market. Secondly, our GMM results using dummy variables confirm us that providing DMA possibly plays a critical role in making profit for the investor of large trading amount or high trading frequency. Our results support the structural problem is embedded in ELW market and DMA system intensifies such unfair game.

A Worldwide Examination of Exchange Market Quality: Greater Integrity Increases Market Efficiency

We develop a framework for assessing security market quality (MQ), relating five elements of market design to three metrics of market integrity and two metrics of market efficiency. We empirically implement this integrity–efficiency MQ framework by testing a hypothesis that trade-based ramping manipulation at the close (MTC) raises execution costs on 24 security markets worldwide. Estimating a simultaneous equations model of ramping incidence, spreads, and the probability of deploying real-time surveillance (RTS), we show that quoted bid-ask spreads are positively related to the incidence of MTC across seven liquidity deciles. The magnitude is economically significant; improving market integrity by cutting MTC in half reduces spreads 6–11 %. Allowing direct market access in conjunction with RTS, conducting auctions at the close, and developing regulations that require surveillance, all reduce MTC and thereby lower spreads, assuring better market integrity and enhancing market efficiency. Introducing circuit breakers or prohibiting shorts poses integrity–efficiency tradeoffs.

DETERMINANTS OF SMALL SCALE DAIRY SHEEP PRODUCERS’ DECISIONS TO USE MIDDLEMEN FOR ACCESSING MARKETS AND GETTING LOANS IN DRY MARGINAL AREAS IN SYRIA

SUMMARYThe paper describes value chain actors and institutional arrangements along value chains, and identifies major determinants of farmers’ decision making to work with middlemen/traders ‘jabbans’ (or cheese makers), and based on those identify short implications for research, development and policy processes. We hypothesize that small-scale sheep producers are more dependent on middlemen for market and loans than larger holders, leading to welfare losses. Our empirical findings based on a Heckman model applied for 120 farming households conducted in Khanasser region (Syria) show that despite unequal benefits, local arrangements are more blessing than curse for the poor. Small-scale sheep producers and middlemen developed intricate institutional arrangements that are mutually beneficial. Producers act collectively to pool sufficient quantity of milk to be attractive to traders (jabban) while gaining access to market and cash loans mainly for feed. This provides the middlemen needed supplies with reduced transaction costs. This suggests that development organizations should support local capacity of producing organizations to work together, small-scale producers to organize, develop small scale dairy processing workshops for pooling and possibly processing milk, support training for direct market access and facilitate access to loans. Finally, supporting organizations such as rural financial services and micro-finance need to ensure up-to-date market information is available to ensure fair prices are paid. They should also be able to negotiate favourable conditions for loans and reach out to these resource-poor rural populations where formal credit systems are absent.

Constituent Deals in the Indian Government Securities Market

The proactive measures undertaken by Reserve Bank of India (RBI) helped to develop the government securities market and added depth and liquidity. The proprietary deals constitute the largest part of the dealing in Government securities market. Commercial Banks offer constituent services to smaller entities like cooperative banks, corporates, etc. to facilitate their trading activities in Government securities. The constituent deals have almost stagnated as many smaller entities are given permission by RBI to directly deal in the market instead of going through a Bank. RBI has been taking measures to improve direct market access instead of going through intermediaries. The study finds that NDSOM system has helped to reduce price variations in Government securities to a large extent as bond traders can view the market online and take appropriate positions. There is a need to encourage smaller entities co-operative banks, pension funds with Gilt Accounts and currently participating through brokers or Primary Members like commercial banks to avail of the NDSOM to directly manage their positions and also to reduce their transaction costs. There is also a need for Foreign Institutional Investors to be given access to the NDSOM to be able to take advantage of the direct trading in this market.

Multi-Asset Class Investing and Trading: “A ContinuingWork in Progress”

From the inception of the investment process itself, the desire to increasingly expand the variety of investment options has led to the creation of a range that has become available to capitalize on the various asset classes themselves. Each of those asset classes has embraced the attributes of electronic trading as direct market access (DMA), direct strategic access (DSA), and execution-focused algorithmic trading have grown in popularity in United States and international markets. In this paper, we examine multi-asset class investing and the trading options available. <b>TOPICS:</b>Portfolio construction, statistical methods, exchange-traded funds and applications

Effect of Decimalization on Market Equilibrium and Price Discovery

Recent crises have focused interest on methods to improve the functioning of financial markets. In this context it would be prudent to evaluate the effects of previous changes. Previous research on decimalization of tick size, a significant microstructure change, mostly examines its effects on spreads etc. This paper studies the effect of decimalization on the dynamics of market equilibrium in fragmented markets, when a single or identical assets are traded in several markets. Using cointegration analysis this study finds that when a price innovation enters one market, the time taken for new equilibrium to be reached by other markets is significantly longer after decimalization. This finding is important in the context of the current market environment of Direct Market Access (DMA). When markets are in disequilibrium even for a few additional micro seconds, high frequency trading algorithms can provide a trading advantage, and create new arbitrage opportunities.

Disintermediation or Financial Diversification? The Case of Developed Countries

Measuring an intermediation rate is a good way of capturing the importance of the role of financial intermediaries in a given economy and their position in the face of the growth in market financing. Results show a quite sizeable decline in the financial intermediation rate in France over the period concerned, characterised by the strong growth of capital markets and the increasing use made by non-financial agents of non-intermediated financing. This development should nevertheless be treated cautiously, for several reasons. First, because it stems largely from the internationalisation of the financing and investing movements of resident financial institutions (FIs) and of market financing received by non-financial agents. Thus, an increasing proportion of resident FIs' assets are held vis-a-vis non-residents and a growing share of the financing received by residents comes from the of the mainly from non-resident FIs. Second, because an analysis of the revenue of financial intermediaries confirms the change in their price setting practices and a shift in their activities. Lastly, because the choice by non-financial agents is not only made between intermediaries and direct-market access. First of all, this article analyses the changes in the intermediation rate in France and abroad. A growing share Is accounted for by the Rest of the world, while the financing of the national economy by resident FIs has declined. Conversely, resident FIs have developed their operations with the Rest of the world. A broader concept of intermediation is then proposed in order to deal with the so-called decline in financial intermediation. A complementary view of intermediation revenue makes it possible to measure the developments in resident FIs' earnings and to understand the changes that have enabled them to maintain their revenue.