The consequences of online information dissemination on stock market liquidity and efficiency: Implications on African markets

From the Efficient Market Hypothesis, a market is efficient if security prices fully and correctly reflect all available information that is relevant for the stock’s pricing. This requires a medium of information dissemination and transaction ordering with both speed and accuracy. This paper chronologically presents arguments in favour of the internet as one such medium. The internet has also enabled the transmission and archiving of bulky information in a ready-to-use format. And abnormal returns are now quickly observed and arbitraged away to non-existence. Using correlation analysis, we find a positive relationship between the internet and some stock market development indicators.Efficient market hypothesis; internet; online information; stock market; development indicators; Africa

The Competitiveness of Central and Eastern European (CEE) Financial Markets

Although there has been vivid academic debate as to what extent Sovereign Wealth Funds (SWFs) are motivated by political reasons, it is rather clear that countries can use state-owned investment funds as a tool of their foreign policy. Even Barack Obama, during his initial presidential campaign in 2008 commented: “I am obviously concerned if these… sovereign wealth funds are motivated by more than just market consideration and that’s obviously a possibility”. This book looks at SWF activities in Central and Eastern Europe (CEE) to determine the main motives for SWF presence in CEE. Are the potential financial gains the only reason behind their investments? Are SWF activities in the region dangerous for the stability and security of the CEE countries? The book is pioneering analyses of SWFs behaviour in the region, based on empirical data collected from the Sovereign Wealth Fund Institute Transaction Database, arguably the most comprehensive and authoritative resource tracking SWF investment behaviour globally.Rozdział pochodzi z książki: Political Players? Sovereign Wealth Funds’ Investments in Central and Eastern Europe, T. Kamiński (ed.), Wydawnictwo Uniwersytetu Łódzkiego, Łódź 2017.The research seeks to gauge the global competitiveness of Central and Eastern European (CEE) financial markets. The assessment is made using quantitative and hybrid metrics of financial centre development while placing particular emphasis on competitiveness drivers relevant to the activity of global sovereign wealth funds (SWFs) in the CEE region.This book was published in frames of project “Political significance of the Sovereign Wealth Funds’ investments in the Central and Eastern Europe”. The project was financed by the Polish National Science Centre (Decision no. DEC-2012/07/B/HS5/03797)

Economic Impacts of GO TO 2040

The economy of the Chicago metropolitan region has reached a critical juncture. On the one hand, Chicagoland is currently a highly successful global region with extraordinary assets and outputs. The region successfully made the transition in the 1980s and 1990s from a primarily industrial to a knowledge and service-based economy. It has high levels of human capital, with strong concentrations in information-sector industries and knowledge-based functional clusters -- a headquarters region with thriving finance, business services, law, IT and emerging bioscience, advanced manufacturing and similar high-growth sectors. It combines multiple deep areas of specialization, providing the resilience that comes from economic diversity. It is home to the abundant quality-of-life amenities that flow from business and household prosperity.On the other hand, beneath this static portrait of our strengths lie disturbing signs of a potential loss of momentum. Trends in the last decade reveal slowing rates, compared to other regions, of growth in productivity and gross metropolitan product. Trends in innovation, new firm creation and employment are comparably lagging. The region also faces emerging challenges with respect to both spatial efficiency and governance.In this context, the Chicago Metropolitan Agency for Planning (CMAP) has just released GO TO 2040, its comprehensive, long-term plan for the Chicago metropolitan area. The plan contains recommendations aimed at shaping a wide range of regional characteristics over the next 30 years, during which time more than 2 million new residents are anticipated. Among the chief goals of GO TO 2040 are increasing the region's long-term economic prosperity, sustaining a high quality of life for the region's current and future residents and making the most effective use of public investments. To this end, the plan addresses a broad scope of interrelated issues which, in aggregate, will shape the long-term physical, economic, institutional and social character of the region.This report by RW Ventures, LLC is an independent assessment of the plan from a purely economic perspective, addressing the impacts that GO TO 2040's recommendations can be expected to have on the future of the regional economy. The assessment begins by describing how implementation of GO TO 2040's recommendations would affect the economic landscape of the region; reviews economic research and practice about the factors that influence regional economic growth; and, given both of these, articulates and illustrates the likely economic impacts that will flow from implementation of the plan. In the course of reviewing the economic implications of the plan, the assessment also provides recommendations of further steps, as the plan is implemented, for increasing its positive impact on economic growth

Telling the market story through organic information interaction design and broadcast media : submitted to the College of Creative Arts as requirement for the degree of Master of Design, Massey University, Wellington, New Zealand, 2007

Interaction Design, which is essentially story-creating and telling, is at once both and ancient art and a new technology. Media have always effected the telling of stories and the creation of experiences. (Shedroff, N., 1994, p. 2) Advances with visual representations within broadcast design have been applied to areas such as weather simulations, sporting events, and historical reconstruction's. However, financial market information presentation is fairly uniform in television news broadcasting, showing little progression in pace with other news information catego­ries. While stock market news segments make limited use of supporting graphics, addi­ tional information that may assist the viewer is filtered out, effecting viewers interest, understanding and decision making process often associated with market related stories. Research to date has been limited to single visualisations. There has been little re­search into the use of multiple information views that are composed to support news presentations. People use many different information sources on a daily basis. News sources are used to stay informed about events, to some sources, viewer evaluation of informa­tion is a part of that process. News information and other data commodity sources are now more accessible, allowing designers to look at ways of transforming them into new or improved information services. This research explores the display of stock market information by looking at ap­propriate media delivery methods combined with Organic Information Interaction Design to enhance information relationships. Organic Design and Information Inter­action Design 1 principles are combined. This denotes a 'living' relationship between elements, incorporating hierarchy principles with enhanced information delivery and user experiences. Four themes are tied together through the use of a conceptual prototype. [FROM INTRO

Arbitrage and short selling: a political economy approach

Arbitrage and short selling are investment strategies that epitomise a particular mode of investment: smart, sophisticated, and efficiency-enhancing (as described within mainstream finance). Yet many market events of the recent financial history point to a less benign face of this practice. Short selling in particular can be associated with manipulative strategies that do not add much to the efficiency of the market but rather hinder the interests of various categories of market actors, notably long-term investors and corporate actors. Despite pointing to important aspects of the capitalist relationships created by contemporary financial markets, these topics have gone unnoticed in international political economy. This article shows that a political-economy approach to arbitrage would provide important insights into the role that financial theories play in the formulation of regulatory decisions and into the impact that these decisions have on different classes of market actors

Free Money, But Not Tax-Free: A Proposal for the Tax Treatment of Cryptocurrency Hard Forks

Cryptocurrency has attracted extraordinary attention as one of the greatest financial innovations in recent years. Equally noticeable are the increasingly frequent cryptocurrency events, such as hard forks. Put simply, a cryptocurrency hard fork happens when a single cryptocurrency splits in two, which results in original coin owners receiving free forked coins. Such hard forks have resulted in billions of dollars distributed to U.S. taxpayers. Despite ongoing regulatory efforts, to date, the Internal Revenue Service (IRS) has yet to take a clear position on the tax treatment of cryptocurrency hard forks. The lack of useful guidance when filing tax returns has left taxpayers genuinely confused in the past few years. To fill this regulatory gap, this Note proposes a framework for cryptocurrency hard fork taxation. It explains the underlying technology of cryptocurrency hard forks, examines the recommended guidelines from the American Bar Association and the Association of International Certified Professional Accountants on cryptocurrency hard fork taxation, and references the current practices in Japan and the United Kingdom to lay a solid foundation for the proposed framework. Ultimately, this Note proposes a two-pronged tax on cryptocurrency hard forks. The first tax is levied on the profit made from the receipt of forked coins, and the second tax is levied on the profit made from the disposition of forked coins. A concrete proposal is provided for the applicable coin valuation, tax basis, holding period, and tax rate for the two prongs. Aiming to propose a tax treatment that is closest to the nature of cryptocurrency hard forks, this proposal considers various practical concerns, such as the inefficiency of the cryptocurrency market, the indirect possession of forked coins through third-party exchanges, and the fluctuating trading prices of forked coins when determining the valuation, tax basis, and holding period. This proposal not only provides clarity for taxpayers in filing tax returns and fulfilling tax obligations, but it also relieves the potential tax deferral and tax evasion problems that arise after a cryptocurrency hard fork

Impersonal efficiency and the dangers of a fully automated securities exchange

This report identifies impersonal efficiency as a driver of market automation during the past four decades, and speculates about the future problems it might pose. The ideology of impersonal efficiency is rooted in a mistrust of financial intermediaries such as floor brokers and specialists. Impersonal efficiency has guided the development of market automation towards transparency and impersonality, at the expense of human trading floors. The result has been an erosion of the informal norms and human judgment that characterize less anonymous markets. We call impersonal efficiency an ideology because we do not think that impersonal markets are always superior to markets built on social ties. This report traces the historical origins of this ideology, considers the problems it has already created in the recent Flash Crash of 2010, and asks what potential risks it might pose in the future