Author Demetri Papacostas has worked for the financial industry for 28 years, drawing from his wealth of professional experience to produce Foreign Exchange Options and Risk Management. In this book he examines in detail the use of FX options by all the major players and how they are used to mitigate risk, to profit, and to speculate.
The financial crisis triggered an avalanche of legislation, much of which is being directed at the banking world. Such legislation includes the European Market Infrastructure Regulation (EMIR), Markets in Financial Instruments Directive and Regulation (MiFID II), Market Abuse Regulation (MAR), plus others such as the Financial Markets Infrastructure Act (FMIA, or FinfraG).
These regulations have been put in place primarily to address the issue of systemic risk. The commodity and energy trading market has, for the first time, also been hit, not only with these rules, but also specific ones such as the Regulation on Energy Market Integrity and Transparency (REMIT). In Europe the volume of rules has been particularly heavy.
The rules continue to arrive and to change, with far-reaching consequences for the markets to which they are applicable. MiFID II will have a significant impact on many market participants, demanding more intensive changes than ever before; MAR, much like REMIT, will require a vigilant attitude to abuse inside a company, an attitude which the FCA recently found to be lacking in the commodities industry. It is expected that regulators will take a far stricter stance in policing the business from now on.
The first book on the market to formally review stress-test modelling in operational risk as well as explore how stress testing is going to affect AMA (Advanced Measurement Approach) modelling. Industry practitioner and author Even Sekeris has written this groundbreaking work to be accessible to risk managers with only a basic understanding of statistics as well as appealing to a more technical audience with chapters focusing on in-depth analysis.
Firm-wide Stress Testing and Economic Capital presents a common framework for economic capital and firm-wide stress testing modelling across all risk types. The book will provide clear insights on integrated risk models and their use in strategic decision making.
Building on the best-selling first edition, author Terry Benzschawel advances the topics covered in Credit Risk Modelling by outlining the reality of defaults and recoveries, then detailing credit models and credit instruments before presenting some real-world applications.
You'll learn how to measure, hedge and predict the credit-risk premium – reliable techniques for making money in credit markets – and be able to help your firm better manage their exposure to credit risk.