This paper describes and compares different methods of extracting the implied probability distribution of the underlying interest rate futures from the prices of traded options on these futures as well as from past futures prices. These methods are applied to short-term contracts on bank accepted bills trading on the Sydney Futures Exchange. The information on the distribution of the underlying...

In this paper, we show both theoretically and empirically that the size of over-the-counter (OTC) markets can be reduced without affecting individual net positions. First, we find that the networked nature of these markets generates an excess of notional obligations between the aggregate gross amount and the minimum amount required to satisfy each individual net position. Second, we show condit...

Counterparty risk has been at the heart of the recent crisis driven by the toxicity of over-the-counter (OTC) derivatives and failure of high profile financial institutions. This has led policymakers to propose laws that would require most standard OTC derivatives to be centrally cleared. Central clearing involves a central counterparty (CCP) intermediating a transaction and acting as an insure...

Ibuprofen was discovered over half a century ago following pioneering approaches by Professor Stuart Adams OBE for the identification of anti‐inflammatory properties of drugs related to aspirin and later screening of a range of acidic compounds that were synthesized by the late Dr John Nicholson. The subsequent clinical assessments of the anti‐rheumatic activities of ibuprofen were initially as...

he virulence of the 1998 turbulence in the mature financial markets took market participants and authorities by surprise , and some have acknowledged that they do not fully understand the rapidly changing structure and dynamics of global financial markets. 1 As last year's International Capital Markets report analyzed, a substantial buildup in derivatives credit exposures and leverage contribut...

Purpose: To explore community pharmacists’ perception of the sale of non-clinically proven health supplements and over-the-counter (OTC) products available in Penang, Malaysia. Methods: A cross-sectional survey using a self-completed postal questionnaire was conducted in July 2010 among 200 community pharmacists practicing in Penang Island. Results: Fifty six pharmacists participated in the stu...

Due to the needs of medical care, the probability of using health care service from heroin users is high. This cross-sectional study investigated the frequency and correlates of health service utilization among heroin users. From June to September 2006, 124 heroin users (110 males and 14 females, mean age: 34.2 ± 8.3 years) who entered two psychiatric hospitals (N = 83) and a detention center (...

This paper shows how the intraday allocation and pricing of overnight loans of federal funds reflect the decentralized interbank market in which these loans are traded. A would-be borrower or lender typically finds a counterparty institution by direct bilateral contact. Once in contact, the two counterparties to a potential trade negotiate terms that reflect their incentives for borrowing or le...

1042-9573/$ see front matter 2011 Elsevier In doi:10.1016/j.jfi.2011.05.001 q An earlier version of this paper was completed ⇑ Corresponding author. E-mail addresses: [email protected] (T.V. D This paper analyzes endogenous information provision and purchase in over-the-counter (OTC) markets. On the supply side the optimal strategy of an information provider consists of selling identical info...