The nexus between bond liquidity, stock liquidity and foreign portfolio investment

The purpose of this article was to assess the impact of financial market liquidity on international capital flows in emerging markets. Specifically, the research investigates the effect of bond market liquidity and stock market liquidity on foreign portfolio investments using data for five emerging African countries, being Egypt, Kenya, Mauritius, Nigeria and South Africa, for the period 2000 to 2020. The data was sourced from the Bloomberg and World Bank (WDI) databases. Panel data analysis (fixed effects model) was undertaken using three different liquidity measures: the effective spread; Amihud’s (2002) illiquidity measure; and market impact as measured by trading volume. Our findings revealed mixed results. It was found that stock market liquidity attracted foreign portfolio investments. Although bond market liquidity, as measured by the volume of trade, promoted foreign portfolio investment, it was different for the effective spread, as the higher the effective spread, the higher the inward FPI flows, and vice versa. Results on the effects of the bond effective spread on FPI show that as long as the bonds are above the investable grade, investors are not discouraged by the cost of trading. Our findings thus confirm that FPI inflows are predisposed on liquid and efficient host country financial markets. Further, the entrance of foreign investors in the host country’s domestic financial markets, leads to the enhancing of liquidity in the local market, thus increasing risk sharing between local and foreign investors.

Discriminatory Pricing of Over-the-Counter Derivatives

For the first time, new regulatory data allow precise measurement of price discrimination against nonfinancial clients in the foreign exchange derivatives market. Consistent with the theoretical literature, transaction costs vary systematically with measures of client sophistication. The median client pays 10.9 pips more than blue-chip companies because of its lower level of sophistication, which compares with a sample average effective spread of 6.9 pips. However, price discrimination is fully eliminated when clients trade electronically on multidealer platforms. We also document that less sophisticated clients incur additional costs when trading with their relationship bank and in fast-moving markets, but only for bilaterally negotiated contracts. This paper was accepted by Haoxiang Zhu, finance.

Scientific collaboration for early detection of invaders results in a significant update on estimated range: lessons from Stenothoe georgiana Bynum & Fox 1977

Detection of new non-indigenous species is often delayed when taxonomically challenging taxa are involved, such as small-sized marine organisms. The present study highlights the relevance of scientific cooperation in the early detection of the invader amphipod Stenothoe georgiana. Originally described from North Carolina (USA), the species was recently found in Chile and the Western Mediterranean. Here, we provide the first record of the species in Macaronesia, Atlantic coasts of continental Europe, North Africa and Australia, and extend its known distribution along the Mediterranean coast. Just like other small crustaceans, shipping (including recreational boating) and aquaculture are probably the main vectors of introduction and secondary spread for this amphipod species. This case of S. georgiana sheds light on the importance of promoting taxonomical knowledge, and building multidisciplinary expertise networks that ensure an effective spread of alien species information. We also encourage the implementation of standardized monitoring methodologies to facilitate early detection of small mobile invaders.

El spread bancario frente a la regulación de tasas. / The bank spread facing the interest rate regulation.

Este trabajo busca analizar los efectos de la disposición de tasas activas máximas y tasas pasivas mínimas por parte del Banco Central de la República Argentina sobre el spread entre el cociente de ingresos financieros sobre los préstamos y el cociente de los egresos sobre los depósitos de los bancos privados que operaron en Argentina en el periodo 20122015. Luego de enumerar algunos modelos teóricos post-keynesianos para explicar cómo definen las diferentes tasas nominales los bancos comerciales, se analiza desde los estados financieros, como se comporto efectivamente el spread bajo las distintas regulaciones de la autoridad monetaria central. Los resultados demuestran que mas allá de las tasas máximas y mínimas, el spread efectivo no disminuyó, sino todo lo contrario. ABSTRACT: This paper aims to analyze the effects that maximum lending rates and minimum time deposit rates provided by the Central Bank of Argentina had on the spread between the ratio of financial income on loans, and the ratio of financial expenditures on the private banks deposits, operating in Argentina between 2012 and 2015. After reviewing some post-keynesians theories to explain how the commercial banks define the different nominal rates, this article analyzes, based on the financial statements, the actual spread behavior under the regulations of the central monetary authority. The results show that beyond the maximum and minimum rates, the effective spread does not decrease, but quite the opposite.

Options Trading Costs Are Lower than You Think

Conventional estimates of the costs of taking liquidity in options markets are large. Nonetheless, options trading volume is high. We resolve this puzzle by showing that options price changes are predictable at high frequency, and many traders time executions by buying (selling) when the option fair value is close to the ask (bid). Effective spreads of traders who time executions are less than 40% of the size of conventional measures, and the overall average effective spread is one-quarter smaller than conventional estimates. Price impact measures are also affected. These findings alter conclusions about the after-cost profitability of options trading strategies.

Effect of Vane Shape on Fertilizer Distribution for a Dual-Disc Spinner Spreader

Spinner-disc spreaders are commonly used for application of granular fertilizers with components (divider, spinner-discs, and vanes) influencing material flow behavior and distribution. Fertilizer ricocheting off these components is an uncontrolled aspect of material flow that negatively impacts spread uniformity. Therefore, an investigation using potash (KCl) was conducted to understand the impact of vane shape on fertilizer flow, ricocheting and distribution for a dual-disc spinner spreader. Four different vane shapes were used in this study. The first two vanes (Vanes 1 and 2) were common to this type of spinner spreader with a tapered and open-faced design. However, Vane 1 had a forward tapered top edge at an angle of 32° while Vane 2 had a top edge that was tapered backwards at 15°. Vanes 3 and 4 both had C-channel cross sections with Vane 3 tapered from inside out but Vane 4 had a constant height. Treatments included application rates of 220 and 440 kg/ha using three spinner disc speeds (600, 700, and 800 rpm). Stationary tests were conducted using a collection device that mounted around the spinner discs and vanes in order to estimate fertilizer particle exit points off the vanes. Standard pan tests were conducted to characterize resulting spread patterns, effective spread width, and spread uniformity. Results indicated that the level of ricocheting was significantly impacted by top edge design of a vane and increased with disc speed. The forward, upward facing top edge of Vane 1 caused on average, 26% of the material flow to be ricocheted by the vanes thereby inducing an uncontrolled nature of spread. However, the rearward facing top edge of Vane 2 reduced ricocheting by 13% plus generated a backward particle rotation for those contacting it. The majority of ricocheting occurred when particles contacted the vanes compared to the spinner discs. Ricocheting generated an uncontrollable aspect of the spread pattern with these particles applied along the centerline of the spreader. The effective spread width increased with disc speed. All four vane shapes generated equal effective spread widths of 18.3 and 21.3 m at 600 and 700 rpm, respectively. However, at 800 rpm, Vane 4 generated the greatest effective spread width of 24.4 m compared to 22.9 m for the other three vanes. The wider spread width for Vane 4 was contributed to the rectangular U cross-section maximizing the horizontal velocity of potash particles when exiting the vanes compared to the other three, more open faced vanes. Finally, the spread uniformity varied by vane shape with Vane 2 consistently generating the lowest CVs. Keywords: Distribution, Ricocheting, Vane Design, Spread uniformity, pattern.

Factors Influencing Behavioural Intention to Use Mobile Banking in Champawat District of Uttrakhand

India has more mobile connections compared to banking accounts, therefore GoI in Economic Survey 2014-15, proposed JAM (Jan-Dhan Yojana, Aadhar Number and Mobile Number) trinity to use ICT for more efficient and effective spread of formal banking even to the hilly areas where brick and mortar banks are challenging to build and sustain. Also, financial inclusion cannot happen without economic activity, and Mahatma Gandhi National Rural Employment Act (MGNREGA) is a policy which significantly helped to enhance the economic activity of rural India. Because of penetration of mobile technology and involvement of the same in financial inclusion, this research will contribute to understanding the constructs of mobile banking adoption in hilly rural area of Champawat District, Uttrakhand w.r.t population registered with MGNREGA. The authors found research is scarce for mobile banking adoption in hilly rural areas of India. (Mehta et, al 2019) may be the only study for Champawat district of Uttrakhand, using technology acceptance model (TAM) and total interpretive structural modelling (TISM) to develop a model. This paper takes model from Mehta et al. 2019 and examines the relationship between the constructs using structured equation modelling (SEM).

Mobile Banking – An Answer to Financial Inclusion in Hilly Rural India.

Financial Inclusion is still a major challenge for the India, despite of being one of major agenda since 2004-2005, due to difficulty in reaching far flung areas of the country comprising 600,000 villages. This has huge implications on economic development of the country. Therefore there is regular thrust from Government of India (GoI) to bring everyone to the ambit of formal banking system through various schemes. Mahatma Gandhi National Rural Employment Act (MGNREGA) is one of the major GoI schemes that have contributed significantly to financial inclusion in India. India has more mobile connections compared to banking accounts, therefore GoI in Economic Survey 2014-15, proposed JAM (JanDhan Yojana, Aadhar Number and Mobile Number) trinity to use ICT for more efficient and effective spread of formal banking even to the hilly areas where brick and mortar banks are difficult to build and sustain. Hence to understand the constructs of mobile banking adoption for financial inclusion in Champawat district of Uttrakhand, India under MNREGA, this research discusses revised technology acceptance model (TAM) and carefully picked constructs from literature review which were weaved together by using Total Interpretive Structural Modeling (TISM) to form a conceptual model for Champawat District of Uttrakhand, India.

Developing a Culture of Opioid Stewardship

The goal of opioid stewardship is to provide public health practitioners and health care professionals with the education and tools they need to appropriately prescribe opioid medications to patients for whom an opioid is indicated and to reduce the overall supply of unused opioid medications that might be diverted and used by individuals other than the intended patient. In this chapter, the Pennsylvania Department of Health’s experience with developing a comprehensive opioid stewardship approach illustrates that creating a statewide culture of opioid stewardship is a process requiring active involvement of health care professionals, provider and patient groups, law enforcement agencies, academic institutions and large health systems, state policymakers and politicians, and the general public. By analyzing Pennsylvania’s experience of building a culture of opioid stewardship, other states can learn how to foster opioid stewardship to ensure its effective spread across the nation.