Question

Give recommendation 10 strategies to upgrade the Secondary Markets for Derivatives for digital enterprise ( in term: Liquidity, transparency, efficiency, risk management, market microstructure, development/size of markets )

Answer 1

Answer:

Liquidity management  market small scale structure .

Bank financing hazard or risk.

The connection between financing liquidity and market liquidity might be considered in terms of the side of the balance sheet to which these apply market liquidity is worried about the asset side ,and discussed and represented.

Financing liquidity by contrast.

The funding risk of financial organization relies upon the two its liquidity position and its risk management policies.Sometimes returns are un-influenced by market value developments or movements as a rule banks use supporting instruments, for example, interest, late swaps to decrease the effect of market value movements on a market - to - market  balance sheet. Accounting approaches and practices can likewise affected here.

Some business methodologies or strategies may include the two sides of the balance sheet start to disseminate as securitisation may include both the sale of assets and the making of unexpected.

An introductory model

Z₁>1(positive NPV) of which just z₀<1 is pledgable to outside speculators ( the venture or project isn't self - financing )

This implies 1-z₀ should be paid by the entrepreneur or financed by the company's current assets

The venture will go a head if the business visionary approaches assets A>/1-z₀>0

Liquidity shock

c = min (1+F_LR_L+F_MT_M(1+F_LR_L)/F_L)

Market micro structure and liquidity :

Issuance discount costs will in general be biggest when these is high vulnerability among sellers and financial specialists or investors

It is conceivable to look at the development of turnover approaches of specific market instruments after some time

Yield curves that take into consideration credit impacts may   slope downwards with development instead of have the typical positive slant of  pure time preference.

Indeed, even at very top quality securities the spread around a specific curve is of an alternate request of magnitude to the spread around a run of the typical gift curve thus the term "yield curve" implies something rather different.

This procedure happens outside of the automatic stay highlight of most insolvency frameworks .Any surplus emerging from the liquidation would have a place with the organization of the defaulted