The Roles And Functions Of Bourse Africa

Hedging is a significant measure of financial risk management. Since the 1970s, the increasing number of powerful companies started to control the risk of the exchange rate, the interest rate and commodity by using financial derivatives. ISDA (2013) based on the Global 500 Annual Report 2012 survey found that 88 percent of companies use foreign exchange derivatives. Modigliani & Miller (1958) believed that if the financial markets were under perfect conditions, for instance, there was no agency costs, asymmetric information, taxes and transaction costs, hedging would not increase the company 's value because investors can hedge by themselves. However, a large number of practical studies have shown that hedging is beneficial

Commodity prices – parallel to stock prices – can boom and bust without warning affected by numerous reasons. For this reason alone, having an agreed minimum price is a great importance for farmers. For an instance, a large-scale crop failure leads to not enough rice, but higher prices. Bearing this in mind, agreed prices becomes an interest for the end users, therefore making both the retail merchants and end users obtain advantages from the futures contract to have a solidified market transaction.

For the purposes of this report, I analyzed the July corn futures market from a long position in contrast to my short position in the cash market. I took out one contract with a size of 5000 bushels of corn. I tracked this market since January 16th and collected futures and cash market prices throughout that whole period. In addition, I also analyzed hedging with futures and hedging futures with options dating back to February 21st. This report shall cover all aspects of this analysis including a compare and contrast section on each of the net prices from each hedging option.

The main purpose of this game is to identify and respond to the risk in the market. At the beginning of the game, as the trend in the market has not been identified, small trade size of futures was buy/sell and close off immediately after I observed that the market price is changing. As a general rule, I long futures while the futures appeared to be in in bullish market and, in contrast, short them in bearish market. When the market price on futures is on an upward trend, I long futures at market price and sell them when price has raised. In contrast, I short futures contracts at market price and buy them back while the price has dropped to a lower price than the origin price that I sold. One thing to note that there are times that while I am holding on a long

With MiFID emphasizing on best execution of trades across trading venues and the emergence of Multilateral Trading Facilities, (MTFs), competition between trading venues increased. As a natural progression of this, competition emerged in the post trading area amongst CCPs and CSDs to provide clearing and settlement services to trades executed on the new trading platforms. EMIR provided a further impetus to this by setting out common rules for CCPs, enabling recognized CCPs to offer their services across the

Although today energy companies are the biggest users of these trades, there is growing awareness and signs of potential growth in the trading of weather futures among agricultural firms, renewables, mining, retail, construction companies, restaurants, and even companies involved in tourism and travel, like hotels and airlines. The number of markets that could invest in and could benefit from weather derivatives is endless. Here are some examples of industries and companies that currently use weather derivatives, the type of weather they hedge on, and the risks they assume:

In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today (the futures price or the strike price) but with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange. The party agreeing to buy the underlying asset in the future, the "buyer" of the contract, is said to be "long", and the party agreeing to sell the asset in the future, the "seller" of the contract, is said to be "short". The terminology reflects the expectations of the parties -- the buyer hopes the asset price is going to increase, while the seller hopes for a decrease. Note that the contract

Do you want to earn a stable income, but at the same time, be brave enough to take risks? Do you want to insure your assets and try your hand at trading on financial market? Do you have good business instinct? Are you interesed in world news? In this case, it is mandatory for you to know what is a futures contract. Futures contracts are unique invention, created to simplify the business life and make a high profit. Using futures, producers of goods can insure their products for years to come and portfolio managers can reduce the risks specific to their profession. Any successful futures contract has a crucial function: it meets the needs of a market.

Totally proficient stock exchanges are non-existent obviously yet this improvement helps us to better comprehend what is going ahead in the genuine world.in the not so distant future I will attempt to exhibit (and picture) how we can tell the securities exchanges are getting more effective.

I. Securities Markets A) Types of Securities Markets 1. The Primary Market a. Going Public: The IPO Process b. The Investment Banker’s Role 2. Secondary Markets B) Organized Securities Exchanges 1. The New York Stock Exchange a. Trading Activity b. Listing Policies 2. The American Stock Exchange 3. Regional Stock Exchanges 4. Options Exchanges 5. Futures Exchanges C) The Over-the-Counter Market 1. New Issues and Secondary Distributions 2. The Role of Dealers 3. Nasdaq 4. Alternative Trading Systems D) General Market Conditions: Bull or Bear Concepts in Review II. Globalization of Securities Markets A) Growing Importance of International Markets B) International Investment

* With futures, credit risk mitigation measures, such as regular mark-to-market and margining, are automatically required. The exchanges employ a system whereby counterparties exchange daily payments of profits or losses on the days they occur. Through these margin payments, a futures contract's market value is effectively reset to zero at the end of each trading day. This all but eliminates credit risk.

Since the adoption of the multi-currency regime, Zimbabwean financial institutions have increasingly been facing challenges associated with

Introduction Now a day under taking marketing activities is compulsory and a key to exist in the business environment especially in the financial sector where competition is strong. In Ethiopia there are 16 private commercial banks and three public owned banks. There is strong competition among these banks to take market share and earn profit especially for those banks that enter the market recently. In addition according to the National Bank of Ethiopia Directive, all commercial bank have to reach 500 million paid up capital in the coming four years. In order to achieve this amount of capital these banks must sell new share, persuade their existing share holders to

When trading on a daily basis, investors need prompt access to their assets. For this reason, top exchanges provide their platforms on desktop and mobile

Futures Market: Over the course of this semester I followed the July corn futures market. Throughout my time spent tracking the futures market corn prices remained low as compared to previous years. From January 18, 2016, to April 22, 2016, prices remained steady around the $3.00 range. This was a result of various market developments which took place throughout the past four months. A major factor that affected prices frequently was the weather. Agriculture depends heavily on weather and as a result the futures corn prices were affected. Increases in U.S. corn prices took place whenever other major corn producing countries experienced bad weather. If the U.S. predicted hazardous weather, prices also increased because it likely took a toll on the overall production. Another major development that affected the U.S. futures prices dealt with the value of the U.S. dollar. As the value rose compared to other currencies, futures prices dropped. This was due to export decreases and as a result the supply within the United States increased, causing futures prices to fall. However, when the value of the dollar decreased U.S. futures increased. As a result, other countries demanded more U.S. corn, leading to increased futures prices. The USDA releases reports that impact U.S. futures prices. Within these reports expected numbers of production, yields, and various other factors are calculated, which greatly impact the U.S. futures