A market for weather risk ? Worlds in conflict and compromising.

In this paper we study the development of the market for weather derivatives in Europe. We show that weather derivatives conceived as financial products by their promoters have difficulties finding end-users. We describe the attempts of market promoters using a framework drawn from economic sociology, namely the theory provided by Boltanski and Thevenot's Economy of Worth. We derive some conclusions about the potential future of the market.Social studies of finance; Weather risk; OTC market;

Market shaping as an answer to ambiguities. The case of credit derivatives.

Building on Smith (1989), we describe the social processes surrounding a new financial OTC derivatives market, the market for credit derivatives. We show that in contradiction to more traditional derivatives, credit derivatives generate ambiguities of a cognitive and political nature. By conducting an in-depth longitudinal qualitative study from 1996 to 2004, we document the efforts made by the promoters of the market to alleviate these ambiguities and show how the size of resources needed results in the leadership of the most powerful. We thus provide a socially based explanation for the concentration and lack of transparency of the market. Our research exemplifies the contradictions between the rhetorical justification of financial innovations provided by financial theory and the empirical realities of a modern derivative market. It suggests that the actual structure of the market might best be understood by paying attention to the way different cognitive and political communities react to these contradictions. [ABSTRACT FROM AUTHOR]Credit derivatives; Social processes; Derivative securities; Over-the-counter markets; Construction sociale d'un marché financier;

The connexionnist nature of modern financial markets. Challenges and possible outcomes

The recent financial crisis has triggered radical criticism against financial markets. In this paper, we propose to analyse this criticism in the perspective drawn by Boltanski and Thevenot (1991/2006) around the notion of justification. We see the main debate as opposing the critics and the defenders of what can be identified as a Market order (Boltanski and Thevenot, 1991/2006). While the former regret the consequences of deregulation in financial markets, the latter insist on the preservation of regulatory options favouring market activity as much as possible. This debate however relies on the hypothesis that financial markets in general fit the ideal-type of the Walrasian market model. While this hypothesis might make sense as regards the description of stock markets (this refers to the so called market efficiency issue), it appears unrealistic when applied to the majority of modern financial markets. At least 80% of those are OTC markets where bilateral contracts are exchanged between counterparties in the absence of any centralized structure. Our thesis is that to be useful, a critical perspective on financial markets should take full account of the nature of OTC markets, which guarantees neither the transparency of prices nor the efficiency of competition mechanisms. We propose to characterize this nature using Boltanski and Chiapello's concept (1999/2008) of the Connexionnist World. We then emphasize the difficulty of the connexionnist grammar of worth to develop principles of justice in OTC markets, which are characterized by their despatialization and the infinity of potential members. We suggest potential tracks to struggle more efficiently against the drifts of the connexionnist logic as they arise on financial markets and their spillover effects on societies. The contribution of the paper is thus to provide a more precisely targeted critique of modern financial markets.connexionism, social studies of finance, critical theory

Market Shaping as an Answer to Ambiguities.

Building on Smith (1989), we describe the social processes surrounding a new financial OTC derivatives market, the market for credit derivatives. We show that in contradiction with more traditional derivatives, credit derivatives generate ambiguities of a cognitive and political nature. By conducting an in-depth longitudinal qualitative study from 1996 to 2004, we document the efforts made by the promoters of the market to alleviate these ambiguities and show how the amount of resources needed results in the leadership of the most powerful. We thus provide a socially based explanation for the concentration and lack of transparency of the market. Our research exemplifies the contradictions between the rhetorical justification of financial innovations provided by financial theory and the empirical realities of a modern derivative market. It suggests that the actual structure of the market might best be understood by paying attention to the way different cognitive and political communities react to these contradictions.Social studies of finance, social construction of value, financial innovation, OTC markets, cognitive and political ambiguities

Fast electrophoresis in conventional capillaries by employing a rapid injection device and contactless conductivity detection

A purpose-made set-up featuring an automated fast injector allowed the easy optimization of the injected amount and the adjustment of the separation length of conventional capillaries from a minimum of 5cm upward. It was found that a compromise in capillary length for separation efficiency and analysis time also has to take into account the injected amount, which in turn affects the sensitivity and hence the detection limit. The versatility of the system was demonstrated by the analysis of the major cations and anions in natural water samples in less than 1min, the concurrent determination of a mixture of amino acids and carbohydrates in 160s, and of three active ingredients in a pharmaceutical preparation in 40s. Plate numbers were typically around 50,000 and detection limits down to 1μM could be achieve

The connexionnist nature of modern financial markets. Challenges and possible outcomes

The recent financial crisis has triggered radical criticism against financial markets. In this paper, we propose to analyse this criticism in the perspective drawn by Boltanski and Thevenot (1991/2006) around the notion of justification. We see the main debate as opposing the critics and the defenders of what can be identified as a Market order (Boltanski and Thevenot, 1991/2006). While the former regret the consequences of deregulation in financial markets, the latter insist on the preservation of regulatory options favouring market activity as much as possible. This debate however relies on the hypothesis that financial markets in general fit the ideal-type of the Walrasian market model. While this hypothesis might make sense as regards the description of stock markets (this refers to the so called market efficiency issue), it appears unrealistic when applied to the majority of modern financial markets. At least 80% of those are OTC markets where bilateral contracts are exchanged between counterparties in the absence of any centralized structure. Our thesis is that to be useful, a critical perspective on financial markets should take full account of the nature of OTC markets, which guarantees neither the transparency of prices nor the efficiency of competition mechanisms. We propose to characterize this nature using Boltanski and Chiapello's concept (1999/2008) of the Connexionnist World. We then emphasize the difficulty of the connexionnist grammar of worth to develop principles of justice in OTC markets, which are characterized by their despatialization and the infinity of potential members. We suggest potential tracks to struggle more efficiently against the drifts of the connexionnist logic as they arise on financial markets and their spillover effects on societies. The contribution of the paper is thus to provide a more precisely targeted critique of modern financial markets

Uniformisation des taux de profit et hypothèse sectorielle

The hypothesis of an equalization of sectorial rates of profit has an important role to play in the economic theory. Though it has been formulated a long time ago (A. Smith, D. Ricardo…), now as a definite principle (with its mechanism) and now as a postulate, it is however contradicted by statistical observation. There have been various answers to this problem. We propose to study it in a new light, emphasizing that the formulation of this "law" as well as its empirical evidence are registered within the traditional framework of activity sector. Then, we have to think about the latter as it has a fundamental role to play. But the activity sector is no longer a homogeneous category, for firms can considerably differentiate the conditions (technological and financial ones) of capital allowance, independently of any reference to the notion of product. Then, we must think over this problem, no longer wondering where this allowance of the capital is produced, but how. This brings us to propose the elaboration of a new classification of the firms, that leads to an analysis at an "intermediary level" other than the insufficient level that results from the division of the economy into activity sectors.

Innovations financières : construire et légitimer un nouveau marché financier de gré à gré -- le cas des dérivés de crédit.

L'objectif de cet article est d'étudier le processus de construction sociale d'un nouveau marché financier. L'analyse qualitative longitudinale menée sur la période 1996-2005 concerne le développement du marché des dérivés de crédit, marché de gré à gré transnational. Comment ce marché est-il né ? Par quel processus est-il venu au jour et a-t-il pérennisé son existence ? Quel est le rôle joué par la théorie financière du risque dans ce processus ? Nous montrons dans cet article que le marché des dérivés de crédit présente de fortes spécificités par rapport aux marchés antérieurement étudiés et que son développement se heurte à la question de la performativité de la théorie financière du risque qui ne constitue pas le cadre cognitif commun à tous les acteurs de la sphère financière.The aim of this paper is to analyze the social construction of a new financial market. A longitudinal qualitative study is used to describe the development of the market for credit derivatives over the 1996-2005 period. Special attention is given to the fact that the market is a transnational over-the-counter market. How was the market born? How did it come into existence and how did it succeed in developing? What role did the financial theory of risk play in the process? This article emphasizes specificities of the market for credit derivatives when compared to previously analyzed financial markets. We show that its development is conditioned by the performativity of the financial theory of risk, which is by no means a naturally shared cognitive frame for the financial actors of the market.Dérivés de crédit; Construction sociale des marchés; Gestion du risque; Performativité; Légitimation; Innovation financière;

Is transparency a value on OTC markets? Using displacement to escape categorization

In this paper, we examine how categorization is resisted. We analyze the way actors draw on cultural repertoires to resist or adapt to changes that will potentially alter the definition and nature of the markets in which they compete. We approach this question through a qualitative study of the heated debate over the new regulation of over-the-counter (OTC) financial markets in Europe between 2010 and 2011. Our paper enriches the existing literature on the political nature of categorization. Our results show that in response to unwanted change, incumbent firms try to create incommensurability with their own industry's standard cultural repertoire. Most importantly, this incommensurability is not argued in the name of any higher-order sets of values. Our main contribution lies in the article's focus on the way powerful actors resist categorization, highlighting the link between forms of commensuration and the status of the actors who attempt to instrument it.Ce papier traite de la résistance à la catégorisation. L'analyse montre comment les acteurs d'un marché utilisent des répertoires culturels pour résister ou s'adapter à des changements susceptibles d'affecter la nature et la définition même des marchés sur lesquels ils se trouvent en concurrence. Nous proposons une analyse qualitative du débat actuel sur la régulation des marchés financiers de gré à gré, en nous concentrant sur le cas européen et sur la période 2010-2011. Ce papier contribue à la littérature académique sur le caractère politique des processus de catégorisation. Nos résultats montrent comment, face à un changement non souhaité, les principales entreprises concernées sont amenées à revendiquer l'incommensurabilité de leur activité avec le répertoire culturel habituel de leur secteur d'activité. Cette incommensurabilité a la spécificité de ne pas prendre appui sur un répertoire de valeurs d'ordre supérieur. Notre principale contribution concerne ainsi l'étude d'une stratégie mise en oeuvre par des acteurs puissants pour résister à une catégorisation non souhaitée, ce qui nous permet de souligner le lien entre le statut des acteurs et les stratégies qu'ils ont à leur disposition dans les processus de commensuration

Innovations financières : construire et légitimer un nouveau marché financier de gré à gré

L'objectif de cet article est d'étudier le processus de construction sociale d'un nouveau marché financier. L'analyse qualitative longitudinale menée sur la période 1996-2005 concerne le développement du marché des dérivés de crédit, marché de gré à gré transnational. Comment ce marché est-il né ? Par quel processus est-il venu au jour et a-t-il pérennisé son existence ? Quel est le rôle joué par la théorie financière du risque dans ce processus ? Nous montrons dans ce papier que le marché des dérivés de crédit présente de fortes spécificités par rapport aux marches antérieurement étudiés et que son développement se heurte à la question de la performativité de la théorie financière du risque qui ne constitue pas le cadre cognitif commun à tous les acteurs de la sphère financière.innovation financière, gestion du risque, performativité, légitimation