Optimal Central Counterparty Risk Management

In order to protect themselves against the potential losses in case of a participant's default and to contain systemic risk, central counterparties (CCPs) need to maintain sufficient financial resources. Typically, these financial resources consist of margin requirements and contributions to a collective default fund. Based on a stylized model of CCP risk management, this article analyzes the main factors affecting the trade-off between margins and default fund. The optimal balance between these two risk management instruments is found to depend on collateral costs, participants' default probability, and the extent to which margin requirements are associated with risk-mitigating incentives. Given the increasing role of CCPs in financial markets in general and for financial stability in particular, these considerations are not only important for CCPs themselves, but also for financial regulators.Central counterparty, margin requirements, default fund, financial stability, incentives

The transmission of trauma in refugee families: associations between intra-family trauma communication style, children’s attachment security and psychosocial adjustment

This study explores the transmission of trauma in 30 Middle Eastern refugee families in Denmark, where one or both parents were referred for treatment of PTSD symptoms and had non-traumatized children aged 4–9 years. The aim of the study was to explore potential risk and protective factors by examining the association between intra-family communication style regarding the parents’ traumatic experiences from the past, children’s psychosocial adjustment and attachment security. A negative impact of parental trauma on children might be indicated, as children’s Total Difficulties Scores on the Strengths and Difficulties Questionnaire (SDQ) were significantly higher than the Danish norms. A negative association between children’s attachment security as measured by the Attachment and Traumatization Story Task and higher scores on the SDQ Total Difficulties Scale approached significance, suggesting that the transmission of trauma may be associated with disruptions in children’s attachment representations. Furthermore a significant association between parental trauma communication and children’s attachment style was found

Psychosocial and community assessment of relatives of victims of extra-judicial killings in Peru: Informing international courts

Introduction: During the Peruvian internal armed conflict, fifteen members of the Santa Barbara community were collectively executed by state agents, and their relatives were made victims of persecution, torture, and imprisonment. The case, known as the Santa Barbara massacre, was brought to the Inter-American Court of Human Rights. The documentation of individual, family and community impacts for the Court became a challenge due to the need to address cultural, geographical, political and community aspects. This paper aims to discuss the complexities of forensic documentation of human rights violations using a psychosocial and communitarian background. Method: The assessment included seven survivors from three different families. Both qualitative and quantitative instruments were used. A participative action research framework guided the design, documentation process, and discussion of outcomes with the survivors. Results/ discussion: The report included four levels of documentation exhibited in the Istanbul Protocol framework: clinical impacts from a western perspective, emic formulations and cultural idioms of distress, communitarian perspectives, and a proposal of reparation measures for the Court. Individual analysis revealed chronic mental health sequelae of forced displacement, imprisonment and torture. Local idioms of distress (in Quechuan, “pinsamientuwan,” “llaki,” “ñakary,” “umananay” and “iquyay”) deepened the understanding of the damage faced by the survivors. The analysis of the community uncovered three main areas of collective damage: broken social and cultural identity, lack of political participation, and loss of perspective on the future. Regarding reparations, survivors highlighted the pursuit for justice, the dignified remembrance of their loved ones, social re-inclusion of displaced persons into the community, education for offspring, and measures for the preservation of their community’s identity and culture. Conclusions: Psycholegal accompaniment for victims through a participatory research approach is essential for the proper documentation of the consequences of violence in complex contexts. It is also essential in guaranteeing that the forensic documentation of the impact of political violence can be proposed as reparative for the survivors in itself