The impact of non-cash collateralization on the over-the-counter derivatives markets

This chapter focuses on the unintended consequences of the post-crisis mandate that over-the-counter (OTC) derivatives be cleared through centralized clearinghouses in an effort to reduce counterparty and systemic risk. Although central clearing has been widely implemented, it has reproduced many of the same characteristics of financial markets that contributed to the 2008 crisis: concentrated risk, moral hazard, and a reliance on faulty risk models. What accounts for the recalcitrance of the OTC derivatives market to a regulatory change? The chapter argues that focusing on the technologies and practices used to govern derivatives markets helps explain the absence of more radical regulatory policy shifts in derivatives regulation. Although there has been a significant shift in who regulates OTC markets, much less has changed at the level of the specific practices that govern these markets, and the chapter examines the continued reliance on netting, collateralization, and risk modeling within clearinghouses.

Download Full-text

Regulate in Haste, Repent at Leisure: Private and Public Orderings in OTC Derivatives Markets

The Oxford Handbook of Institutions of International Economic Governance and Market Regulation ◽

10.1093/oxfordhb/9780190900571.013.25 ◽

2020 ◽

Author(s):

Craig Pirrong

Keyword(s):

Financial Crisis ◽

Functional Approach ◽

Over The Counter ◽

Otc Derivatives ◽

Private And Public ◽

Derivatives Markets

Over-the-counter derivatives were widely blamed for causing or exacerbating the financial crisis. As a result of perceived structural failings in these markets, legislators and regulators mandated substantial changes. The most notable of these changes was a requirement that most derivatives be centrally cleared. Under clearing, a central counterparty becomes a party to all contracts and guarantees performance on them. These mandates were predicated on a defective understanding of the economics of derivatives markets. The proposed reforms were fundamentally flawed because they were rooted in an institutional, rather than functional, approach to regulation.

Download Full-text

373 Historical Use of Substances for Insomnia Impacts Current Beliefs about Hypnotic Medications

SLEEP ◽

10.1093/sleep/zsab072.372 ◽

2021 ◽

Vol 44 (Supplement_2) ◽

pp. A148-A149

Author(s):

Jessica Dietch ◽

Norah Simpson ◽

Joshua Tutek ◽

Isabelle Tully ◽

Elizabeth Rangel ◽

...

Keyword(s):

Prescription Medication ◽

Stepped Care ◽

Future Research ◽

Prescription Medications ◽

Over The Counter ◽

Multiple Treatment ◽

History Of ◽

Study Participants ◽

Beliefs About Medications ◽

The Impact

Abstract Introduction The purpose of the current study was to examine the relationship between current beliefs about hypnotic medications and historical use of prescription hypnotic medications or non-prescription substances for sleep (i.e., over the counter [OTC] medications, alcohol, and cannabis). Methods Participants were 142 middle age and older adults with insomnia (M age = 62.9 [SD = 8.1]; 71.1% female) enrolled in the RCT of the Effectiveness of Stepped-Care Sleep Therapy In General Practice (RESTING) study. Participants reported on history of substances they have tried for insomnia and completed the Beliefs about Medications Questionnaire-Specific with two subscales assessing beliefs about 1) the necessity for hypnotics, and 2) concerns about potential adverse consequences of hypnotics. Participants were grouped based on whether they had used no substances for sleep (No Subs, 11.6%), only prescription medications (Rx Only, 9.5%), only non-prescription substances (NonRx Only, 26.6%), or both prescription and non-prescription substances (Both, 52.3%). Results Sixty-one percent of the sample had used prescription medication for sleep and 79% had used non-prescription substances (74% OTC medication, 23% alcohol, 34% cannabis). The greater number of historical substances endorsed, the stronger the beliefs about necessity of hypnotics, F(1,140)=23.3, p<.001, but not about concerns. Substance groups differed significantly on necessity beliefs, F(3,1)=10.68, p<.001; post-hocs revealed the Both group had stronger beliefs than the No and NonRx Only groups. Substance groups also differed significantly on the concerns subscale, F(3,1)=6.68, p<.001; post-hocs revealed the NonRx Only group had stronger harm beliefs than the other three groups. Conclusion The majority of the sample had used both prescription and non-prescription substances to treat insomnia. Historical use of substances for treating insomnia was associated with current beliefs about hypnotics. Individuals who had used both prescription and non-prescription substances for sleep in the past had stronger beliefs about needing hypnotics to sleep at present, which may reflect a pattern of multiple treatment failures. Individuals who had only tried non-prescription substances for sleep may have specifically sought alternative substances due to concerns about using hypnotics. Future research should seek to understand the impact of treatment history on engagement in and benefit from non-medication-based treatment for insomnia. Support (if any) 1R01AG057500; 2T32MH019938-26A1

Download Full-text

Research on the Effects of Over-the-Counter Drug Advertising

Journal of Drug Issues ◽

10.1177/002204267400400307 ◽

1974 ◽

Vol 4 (3) ◽

pp. 223-226 ◽

Cited By ~ 3

Author(s):

Donald L. Kanter

Keyword(s):

Drug Misuse ◽

Pharmaceutical Advertising ◽

Drug Usage ◽

Over The Counter ◽

Drug Advertising ◽

The Social ◽

The Media ◽

Commercial Advertising ◽

The Impact

Dr. Kanter presents a summary of his research assessing the role of OTC advertising in Influencing drug usage. His work represents the only systematic study of the impact of commercial advertising on drug usage. He stresses that advertising in itself does not directly lead to drug misuse but should be considered as part of a host of factors in the social environment and in the media environment that have significant influence in determining people's behavior. He also urged that the existing pharmaceutical advertising codes, which are often violated, be reviewed and strengthened.

Download Full-text

The impact of commodity benchmarks on derivatives markets: The case of the dated Brent assessment and Brent futures

Journal of Banking & Finance ◽

10.1016/j.jbankfin.2017.08.017 ◽

2018 ◽

Vol 95 ◽

pp. 27-43 ◽

Cited By ~ 3

Author(s):

Alex Frino ◽

Gbenga Ibikunle ◽

Vito Mollica ◽

Tom Steffen

Keyword(s):

Derivatives Markets ◽

The Impact

Download Full-text

Derivatives Markets

Debt Markets and Investments ◽

10.1093/oso/9780190877439.003.0009 ◽

2019 ◽

pp. 151-166

Author(s):

Halil Kiymaz ◽

Koray D. Simsek

Keyword(s):

Interest Rate ◽

Interest Rates ◽

Credit Derivatives ◽

Forward Rate ◽

Fixed Income ◽

Over The Counter ◽

Interest Rate Options ◽

Interest Rate Derivatives ◽

Fixed Income Derivatives ◽

Derivatives Markets

Interest rate derivatives markets have enjoyed substantial growth since the late 1990s. This chapter discusses the development of these markets since 2000 and introduces the most popular interest rate derivative instruments. Although forward rate agreements and interest rate swaps are important examples of over-the-counter (OTC) products, futures on interest rates and bonds are innovations of organized exchanges. Both OTC interest rate options and exchange-traded options on interest rate futures are discussed to illustrate an overlapping area of both types of derivatives markets. Participants in debt markets are also exposed to both interest rate and credit risk. To mitigate the latter risk, the OTC fixed income derivatives markets provide credit default swaps (CDSs). As credit derivatives are also a subset of fixed income derivatives, CDSs are discussed further.

Download Full-text