Implementing the Affordable Care Act: Key Design Decisions for State-Based Exchanges

The Affordable Care Act requires the establishment of new health insurance marketplaces -- known as exchanges -- in every state by October 1, 2013. This report examines key design decisions made by the 17 states and the District of Columbia that chose to establish a state-based exchange. The analysis finds that states made significant progress in structuring their exchanges, with states varying in their design decisions. Many states expect to exceed some federal requirements -- to collect and display quality data, for instance -- for 2014. These findings suggest that states capitalized on the flexibility provided by the Affordable Care Act to tailor their exchanges to their unique needs and made decisions with an eye towards outcomes, such as enrollment, consumer experience, and sustainability. These findings also suggest that states' initial decisions will inform future exchange implementation and that states will adjust their decisions while continuing to adopt innovative approaches to accomplish policy goals

The Need for Transparency in Commodity and Commodity Derivatives Markets. ECMI Research Report No. 3, 15 December 2008

This paper argues that transparency-boosting measures specifically tailored to commodity and commodity derivatives markets are much needed. In particular, encouraging the creation of a clearing infrastructure for OTC commodity and commodity derivatives markets would be desirable. Moreover, EU regulators should consider setting up a new, more effective market abuse regime aimed at preventing manipulation in both the physical and financial commodities markets. Finally, in cooperation with the G20, EU authorities should consider the creation of an International Commodity Agency to increase transparency and restore confidence in international physical markets for commodities. The paper is structured as follows: Section 2 briefly discusses the fundamentals of commodity spot and futures markets. Section 3 presents both physical commodity markets and commodity derivative markets in their usual breakdown categories: agriculture, metals and energy. Section 4 discusses the regulations in the EU and the US concerning commodity derivatives. Section 5 advances certain policy proposals and the last section draws the conclusions

Radical Islamic Terrorism in the Middle East and Its Direct Costs on Western Financial Markets

Close examination of the behaviour of participants in financial markets in the aftermath of terrorist attacks is a valuable line of enquiry. In this paper, we bring together insights from field of finance and politics. Specifically, we examine trading patterns on highly liquid insurance-type financial instruments around a specific terrorist event. This approach provides an insight into risk perception around political violence and allows us to answer a number of key questions on the impact of terrorist attacks on economies and societies. When examined and processed, intraday financial trade data yields valuable empirical evidence on immediate reactions to the threat posed by terrorist groups. The methodology applied in this paper also tells us much about the geographical resonance of terrorist events. We clearly show that fear of economic disruption can be activated in Western markets by events that are often geographically remote. Importantly, these datasets allow us to judge the vulnerability of financial markets to terrorist attack. This potentially allows public authorities to safeguard our interests more effectively. Financial markets are one important element of a "neglected home front" and the risks posed by disruption to those markets are such as to merit our urgent attention.

A guide to implementing cloud services

The Australian Government’s policy on cloud computing is that agencies may choose to use cloud computing services where they provide value for money and adequate security, as stated in the April 2011 Australian Government Cloud Computing Strategic Direction Paper1 (the Strategic Direction Paper).   Readers new to cloud computing should read the Strategic Direction Paper which provides an introduction to cloud computing, a definition and an overview of its associated risks and benefits as they apply to Australian Government agencies. The guide supports the Strategic Direction Paper and provides an overarching risk-based approach for agencies to develop an organisational cloud strategy and implement cloud-based services. It is designed as an aid for experienced business strategists, architects, project managers, business analysts and IT staff to realise the benefits of cloud computing technology while managing risks

Over-the-counter interest rate derivatives

Futures ; Money market

The economic benefits and risks of derivative securities

Certain events have raised concern about the risks associated with derivatives trading--witness Orange County, California or Procter & Gamble, both of which lost large sums of money using derivatives. However, the popular discussion often loses track of the benefits derivatives hold for firms, investors, and the economy as a whole. Have derivatives received a bum rap? Keith Sill admits that derivatives have risks, especially to the uninitiated, but they also have a great deal of value for the economy as wellDerivative securities

Trends in financial market concentration and their implications for market stability

The link between financial market concentration and stability is a topic of great interest to policymakers and other market participants. Are concentrated markets - those where a relatively small number of firms hold large market shares - inherently more prone to disruption? This article considers that question by drawing on academic studies as well as introducing new analysis. Like other researchers, the authors find an ambiguous relationship between concentration and instability when a large firm in a concentrated market fails. In a complementary review of concentration trends across a number of specific markets, the authors document that most U.S. wholesale credit and capital markets are only moderately concentrated, and that concentration trends are mixed - rising in some markets and falling in others. The article also identifies market characteristics that might lead to greater, or less, concern about the consequences of a large firm's exit. It argues that the ease of substitution by other firms in concentrated markets is a critical factor supporting market resiliency.Financial markets ; Capital market ; Theory of the firm

Households WTP for the Reliability of Gas Supply

The security of natural gas supply is an important issue for all EU countries due to the region’s heavy dependence on imported supply sources and in light of energy demand for gas that is continuously increasing. Discussions have emphasised strategies for securing the supply at the macro level, e.g. diversification in supply sources, increase in storage capacity, etc. By contrast, consumers’ demand for the reliability of gas supply is rarely investigated. Hence this study was conducted to examine the economic implications associated with the security of gas supply directly to domestic consumers. Based on the choice experiment approach, household surveys were conducted in France, Italy and the UK. The results confirmed that the degree of the economic impact of a disruption of gas supply to domestic consumers was a function of the duration of a supply disruption and the season in which a supply cut would take place, as well as other preferences of consumers. The willingness to pay to secure per unit of gas consumption, or alternatively the costs of gas unsupplied, was estimated at between €2.65/cubic metre and €41.48/cubic metre across three different European countries.Energy security; gas supply; households; willingness to pay; choice experiment; EU