Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches

Peer-to-peer (P2P) energy trading has emerged as a next-generation energy management mechanism for the smart grid that enables each prosumer of the network to participate in energy trading with one another and the grid. This poses a significant challenge in terms of modeling the decision-making process of each participant with conflicting interest and motivating prosumers to participate in energy trading and to cooperate, if necessary, for achieving different energy management goals. Therefore, such decision-making process needs to be built on solid mathematical and signal processing tools that can ensure an efficient operation of the smart grid. This paper provides an overview of the use of game theoretic approaches for P2P energy trading as a feasible and effective means of energy management. As such, we discuss various games and auction theoretic approaches by following a systematic classification to provide information on the importance of game theory for smart energy research. Then, the paper focuses on the P2P energy trading describing its key features and giving an introduction to an existing P2P testbed. Further, the paper zooms into the detail of some specific game and auction theoretic models that have recently been used in P2P energy trading and discusses some important finding of these schemes.Comment: 38 pages, single column, double spac

Financial system inquiry: final report

Executive summary This report responds to the objective in the Inquiry’s Terms of Reference to best position Australia’s financial system to meet Australia’s evolving needs and support economic growth. It offers a blueprint for an efficient and resilient financial system over the next 10 to 20 years, characterised by the fair treatment of users.   The Inquiry has made 44 recommendations relating to the Australian financial system. These recommendations reflect the Inquiry’s judgement and are based on evidence received by the Inquiry. The Inquiry’s test has been one of public interest: the interests of individuals, businesses, the economy, taxpayers and Government.   Australia’s financial system has performed well since the Wallis Inquiry and has many strong characteristics. It also has a number of weaknesses: taxation and regulatory settings distort the flow of funding to the real economy; it remains susceptible to financial shocks; superannuation is not delivering retirement incomes efficiently; unfair consumer outcomes remain prevalent; and policy settings do not focus on the benefits of competition and innovation. As a result, the system is prone to calls for more regulation.   To put these issues in context, the Overview first deals with the characteristics of Australia’s economy. It then describes the characteristics of and prerequisites for a well-functioning financial system and the Inquiry’s philosophy of financial regulation.   The Inquiry focuses on seven themes in this report (summarised in Guide to the Financial System Inquiry Final Report).   The Overview deals with the general themes of funding the Australian economy and competition.   The Inquiry has also made recommendations on five specific themes, which comprise the next chapters of this report: Strengthen the economy by making the financial system more resilient. Lift the value of the superannuation system and retirement incomes. Drive economic growth and productivity through settings that promote innovation. Enhance confidence and trust by creating an environment in which financial firms treat customers fairly. Enhance regulator independence and accountability and minimise the need for future regulation. These recommendations seek to improve efficiency, resilience and fair treatment in the Australian financial system, allowing it to achieve its potential in supporting economic growth and enhancing standards of living for current and future generations.   Financial system inquiry committee   Mr David Murray AO (Chair) Mr David Murray AO (Sydney) was most recently the inaugural Chairman of the Australian Government’s Future Fund Board of Guardians between 2006 and 2012. Mr Murray was previously the Chief Executive Officer of the Commonwealth Bank of Australia between 1992 and 2005. In this time, Mr. Murray oversaw the transformation of the Commonwealth Bank from a partly privatised bank to an integrated financial services company. In 2001, he was awarded the Centenary Medal for service to Australian society in banking and corporate governance, and in 2007 he was made an Officer of the Order of Australia for his service to the finance sector, both domestically and globally, and service to the community.   Professor Kevin Davis Professor Kevin Davis (Melbourne) is currently a Professor of Finance at the University of Melbourne, Research Director at the Australian Centre for Financial Studies and a Professor of Finance at Monash University. Professor Davis is also a part-time member of the Australian Competition Tribunal and Co-Chair of the Australia–New Zealand Shadow Financial Regulatory Committee.   Mr Craig Dunn Mr Craig Dunn (Sydney) was most recently Chief Executive Officer and Managing Director of AMP. Mr Dunn led AMP through the global financial crisis and has extensive experience in the financial sector. He was a member of the Australian Government\u27s Financial Sector Advisory Council and the Australian Financial Centre Forum, and an executive member of the Australia Japan Business Co-operation Committee. Mr Dunn is a director of the Australian Government’s Financial Literacy Board.   Ms Carolyn Hewson AO Ms Carolyn Hewson AO (Adelaide) served as an investment banker at Schroders Australia for 15 years. Ms Hewson has over 30 years’ experience in the finance sector and currently serves on the boards of BHP Billiton Ltd and Stockland. Ms Hewson was made an Officer of the Order of Australia for her services to the YWCA and to business. Ms Hewson has served on both the boards of Westpac and AMP and retired from the board of BT Investment Management Ltd and as the Chair of the Westpac Foundation upon her appointment to the Financial System Inquiry Committee.   Dr Brian McNamee AO Dr Brian McNamee AO (Melbourne) served as the Chief Executive Officer and Managing Director of CSL Limited from 1990 to 30 June 2013. During that time, CSL transitioned from a Government-owned enterprise to a global company with a market capitalisation of approximately $30 billion. He has extensive experience in the biotech and global healthcare industries. Dr McNamee was made an Officer of the Order of Australia for his service to business and commerce. &nbsp

The future of e-commerce payments

On June 19, 2002, the Payment Cards Center of the Federal Reserve Bank of Philadelphia and the Electronic Funds Transfer Association's Electronic Commerce Payments Council (eCPC) sponsored a joint conference. This meeting was part of the regularly scheduled quarterly council meetings that bring together stakeholders interested in developing or enhancing e-commerce payment alternatives. The session included both Federal Reserve staff and industry leaders discussing how electronic payments are becoming an alternative to paper-based payment products and the adoption of electronic payments by consumers and merchants.Electronic commerce

The Global Employer: The Employment Law Review and Reform Issue

[Excerpt] Although the economies of many jurisdictions are improving, there is still some lingering global economic uncertainty. It is no surprise that governments the world over continue to revisit their employment laws to see what else, if anything, can be done to further stimulate their economies. 2013 was another busy year for employment law reform. Baker & McKenzie’s Global Employment Practice Group is pleased to present its 55th issue of The Global Employer™ entitled “The Employment Law Review and Reform Issue.” In this issue, we review changes to the law in 2013 and a look at pending changes for 2014. Included, you will find information pertaining to the leasing of employees in Germany; new measures in Spain intended to promote employment among young people under 30 and employee privacy rights over employers\u27 controls; challenges to the applicable interest rate to worker\u27s claims in Argentina; how employment law reforms will significantly impact employers in Mexico and in some specific cases, may considerably elevate increase the cost of formal employment; and controversy around making the Colombian Social Security System more progressive. We also review several significant legal developments in China during 2013 that impact employers operating there; legislative changes that were expected in Hong Kong in 2013 that may be implemented in 2014 including a focus on discrimination in the coming years; and welcome changes to TUPE and automatic pension plan enrollment in the United Kingdom

Trends in crypto-currencies and blockchain technologies: A monetary theory and regulation perspective

The internet era has generated a requirement for low cost, anonymous and rapidly verifiable transactions to be used for online barter, and fast settling money have emerged as a consequence. For the most part, e-money has fulfilled this role, but the last few years have seen two new types of money emerge. Centralised virtual currencies, usually for the purpose of transacting in social and gaming economies, and crypto-currencies, which aim to eliminate the need for financial intermediaries by offering direct peer-to-peer online payments. We describe the historical context which led to the development of these currencies and some modern and recent trends in their uptake, in terms of both usage in the real economy and as investment products. As these currencies are purely digital constructs, with no government or local authority backing, we then discuss them in the context of monetary theory, in order to determine how they may be have value under each. Finally, we provide an overview of the state of regulatory readiness in terms of dealing with transactions in these currencies in various regions of the world

Best practice in the regulation of payment services

Payment services are, at their simplest, services for moving money around the economy. These services carry risks for the provider and the customer, from credit and insolvency risk, through to fraud and ‘mere’ errors. Different societies deal with, manage and allocate these risks differently. There are a number of similarities in how these services are regulated, and the careful observer can identify patterns and themes. As the economy continues to be heavily reliant on payment services for its efficient operation, commentators and governments have taken a keen interest in these services. This paper examines the six key regulatory risks for payment services: credit risk, efficiency risk, product mis-match, product failure, transactional failure and privacy. Previous articles have considered recent industry and technological developments in the payments industry, many of which post-date the existing regulatory regime in most jurisdictions. This paper draws conclusions about how a best practice regime might address recent innovations such as mobile payments, online payment services and ‘stored value’ cards. While there is significant commonality between regulatory regimes, there is not yet a common approach to many payment services issues. The goal of this project (and this paper) is to develop a better or best practice framework for the regulation of payment services, drawing on the strengths and weaknesses of the existing regimes. A best practice regime is identified – including both the elements or building blocks, and how and when they should be applied. The elements, based on analysis of key national regimes, are fair play rules, systemic stability, an active supervisor, broad scope, licensing, disclosure, obligations of the parties, liability, dispute resolution and privacy. The paper also explains how these elements can be combined to construct a coherent overall regime. The result is a recommended best practice model involving licensing, disclosure, conduct and redress standards in a three-tiered structure (thus providing a lighter-touch regime for low value products and a more intensive regime for more substantial banking-style products)