Differential equation model of financial market stability based on Internet big data

In the context of Internet big data, the market characteristics of the financial market can be used to feed back its stability with the help of differential equation models. China's financial market is roughly divided into three main markets: stocks, currency and foreign exchange. The interaction of the three has promoted the development of the financial market. With this as a background, the paper aims at these three financial markets and selects relevant indicators that can reflect the indications of the financial market to construct differential equations to analyse the relationship between the three. The paper uses the nonlinear characteristics of ordinary differential equations and related algorithms to solve the three types of market models. It uses an example to demonstrate that the differential equation model proposed in this paper can feed back the evolutionary characteristics of the three, and this model can help investors produce more correct investment decisions.

Financial market stability rests on steady bond yields

Significance Furthermore, liquidity injections by central banks are supressing bond yields. However, even a hint from major central banks that inflation is picking up faster than anticipated could roil stock markets, whose lofty valuations depend on yields remaining ultra-low. Impacts A communication blunder by a major central bank could exacerbate any bond market volatility and cause a sharp sell-off in equity markets. More transmissible coronavirus strains are reaching more nations and reigniting fears about the speed and efficacy of vaccine rollout. A record USD18tn of public and corporate debt is yielding a negative return, fuelling demand for higher-yield EM bonds and currencies. The trade-weighted dollar has fallen by nearly 4% since end-September to the lowest since April 2018; it is set to stay under pressure.

ASSESSMENT OF THE DIFFERENCES BETWEEN THE INTERNATIONAL CONVENTION FOR THE SUPPRESSION OF THE FINANCING OF TERRORISM AND THE UNITED NATIONS SECURITY COUNCIL RESOLUTION 1373

Terrorism financing is a global phenomenon that not only threatens States’ security, but can also undermine economic development and financial market stability. Terrorists require financing to recruit and support members and conduct operations. Thus, preventing terrorists from accessing financial resources is crucial to successfully counter the threat of terrorism. It is therefore of highest importance to stop the flow of funds to terrorists. The article describes the core elements of the main international instruments on the field of the fight against terrorist financing, similarities and differences between these norms. Key words: financing terrorism, terrorist financing convention, terrorist acts, criminalization of financing terrorism, Resolution 1373

Cognitive modeling of factors of financial market stability of Russia

Subject. The paper highlights the financial market stability. It is one of the most important components of economic growth ensuring. Objectives. The article is to draw up a cognitive map of the Russian financial market. It also aims at modeling changes in its segments and finding the main stability factors of the national financial market. Methods. The research involves methods of cognitive analysis and cognitive modeling. Results. Cumulative effect of all segments of the financial market forms its stability. The Russian financial market is most sensitive to changes in the monetary and currency markets, corporate and government borrowing market. There is a significant relationship between the market liquidity and its stability. It is necessary to form free resources storage in ruble assets. The dependence of the domestic market on international financial markets remains despite sanctions restrictions. Conclusions and Relevance. Achieving financial stability requires constant attention to liquidity in the market and predictability of the national currency. The priority direction of the state financial policy is establishment of relations between the leading players in the world financial markets and international financial institutions. Experts can apply the results of this work in the financial and monetary policy formation.

Austria

The macroprudential policy framework has been developed and enhanced since the last FSAP. The Financial Market Stability Board (FMSB)—established in 2014 and tasked with strengthening cooperation in macroprudential oversight and safeguarding financial stability—plays the central role. The FMSB fulfills its mandate by discussing facts relevant to financial stability and issuing expert opinions, policy action recommendations, and warnings about financial stability risks. The Financial Market Authority (FMA), Austria's integrated financial supervisory authority, is also designated by law as the competent authority for applying macroprudential instruments and implements FMSB recommendations on a comply-or-explain basis. The Austrian National Bank (OeNB) is obliged to monitor and conduct analysis of systemic risks and to inform the FMSB on its findings. It also provides the secretariat for the FMSB.

THE IMPACT OF AUTOMATED TRADING SYSTEMS ON FINANCIAL MARKET STABILITY

The way in which financial markets operate has substantially been changed by the development of information technology. Automation of trading systems in financial markets represents the last phase of depersonalizing activities previously done by traders. Algorithmic trading development enabled computers to determine the moment and the way of executing sales orders. Computers still do not make autonomous decisions regarding the choice of instruments to be traded or trading criteria. They implement the strategy a trader has decided on, choosing a favorable moment. This reduces the impact of human emotions on decision making and enables overcoming possible problems which arise due to neglecting or lack of concentration. High-frequency trading enables the execution of algorithmic operations at a high speed. The main goal of the paper is to determine advantages and dangers produced by algorithmic stock trading.

Budgeting reconsidered: exploring change initiative in a bank

Purpose This study aims to explore and understand a beyond budgeting-inspired initiative to abandon budgeting in a multinational bank. Design/methodology/approach Analysing data from semi-structured interviews with actors involved in and affected by the change initiative, this paper draws on Kasurinen’s accounting change framework as well as concepts from institutional theory to investigate the rationale for and the challenges of budget abandonment. Findings Although the improving financial market stability and the increasing accountability of banks after the global financial crisis motivated the initial organisational changes, the appointment of a head of finance with experience of beyond budgeting was a major catalyst of change. This change-promoting leader was of utmost importance in providing relevant training and support, facilitating the change initiative and overcoming the initial resistance to change. However, the remnants of former budgeting practice did not regress as intended, and the change initiative stalled. Originality/value This research contributes to beyond budgeting and accounting change studies by illustrating a stalled change initiative in the context susceptible to beyond budgeting ideas and highlighting the importance of aligning discourse and meaning with practice and routines.