Demutualization and enforcement incentives at self-regulatory financial exchanges

n the last few years, many of the world’s largest financial exchanges have converted from mutual, not-for-profit organizations to publicly-traded, for-profit firms. In most cases, these exchanges have substantial responsibilities with respect to enforcing various regulations that protect investors from dishonest agents. We examine how the incentives to enforce such regulations change as an exchange converts from mutual to for-profit status. In contrast to oft-stated concerns, we find that, in many circumstances, an exchange that maximizes shareholder (rather than member) income has a greater incentive to aggressively enforce these types of regulations

Ca2+ binding to Chromaffin Vesicle Matrix Proteins

Recently we found that Ca2+ within chromaffin vesicles is largely bound [Bulenda, D., & Gratzl, M. (1985) Biochemistry 24, 7760-77651. In order to explore the nature of these bonds, we analyzed the binding of Ca2+ to the vesicle matrix proteins as well as to ATP, the main nucleotide present in these vesicles. The dissociation constant at pH 7 is 50 pM (number of binding sites, n = 180 nmol/mg of protein) for Ca2+-protein bonds and 15 pM (n = 0.8 pmol/pmoi) for Ca2+-ATP bonds. When the pH is decreased to more physiological values (pH 6), the number of binding sites remains the same. However, the affinity of Ca2+ for the proteins decreases much less than its affinity for ATP (dissociation constant of 90 vs. 70 pM). At pH 6 monovalent cations (30-50 mM) as well as Mg2+ (0.1-0.5 mM), which are also present within chromaffin vesicles, do not affect the number of binding sites for Ca2+ but cause a decrease in the affinity of Ca2+ for both proteins and ATP. For Ca2+ binding to ATP in the presence of 0.5 mM Mg2+ we found a dissociation constant of 340 pM and after addition of 35 mM K+ a dissociation constant of 170 pM. Ca2+ binding to the chromaffin vesicle matrix proteins in the presence of 0.5 mM Mg2+ is characterized by a Kd of 240 pM and after addition of 15 mM Na' by a Kd of 340 pM. The similar affinity of Ca2+ for protein and ATP, especially at pH 6, in media of increased ionic strength and after addition of Mg2+, points to the possibility that the intravesicular medium determines whether Ca2+ is preferentially bound to ATP or the chromaffin vesicle matrix proteins. Purified chromogranin A, after sodium dodecyl sulfate- polyacrylamide gel electrophoresis, stains with a carbocyanine dye ("Stains-all") and, following blotting onto nitrocellulose, binds to 45Ca2+. A spectrophotometric analysis of dye binding to chromaffin vesicle matrix proteins revealed a strong absorption band at 615 nm for the dye-protein complex. Since the observed spectral changes were unaffected by the presence of Ca2+ (100 pM free), the sites interacting with the dye and Ca2+ must be regarded as different

The puzzle of privately-imposed price limits: are the limits imposed by financial exchanges effective?

Some of the world’s largest futures exchanges impose daily limits on the price movements of individual contracts. Using data from three of the most active US commodity futures contracts, we show that these price restrictions are largely ineffective because traders are able to take similar positions using other contracts. When price limits become binding on the futures market, the associated (but unrestricted) options market becomes the price discovery market: much of the trading that would have occurred on the futures market migrates to the options market, and options prices accurately predict the (unconstrained) futures price the next day. We also show that the presence of options mitigates the effect of price limits on information revelation by documenting that futures markets reflect more accurate information on days following limit hits when the associated options were trading on the previous day. Overall, our evidence suggests that price limits in US futures markets have little effect on prices when options markets exist.Price limits, Regulatory evasion, Put-call parity, Satellite market, Price discovery

Chromogranin A in the olfactory system of the rat

The olfactory bulb of the rat contains chromogranin A at a similar level as the adrenal gland or the hypophysis as revealed by immunoblots. Olfactory chromogranin A also displays the same size as chromogranin A of endocrine cells. In the hippocampus and other brain regions, we could not detect chromogranin A by immunoblotting. In contrast, chromogranin A messenger ribonucleic acid (using S1 nuclease protection assays) was observed in all brain regions examined, including the olfactory bulb. By in situ hybridization histochemistry with a complementary ribonucleic acid probe (280 nucleotides), and by immunocytochemistry, chromogranin A synthesis could be localized to cell bodies of the mitral cell layer, of the external plexiform layer and of the periglomerular region of the olfactory bulb. Immunocytochemically, chromogranin A was also detected in the central projection areas of mitral and tufted cells in the primary olfactory cortex and the anterior amygdaloid area but not in the olfactory glomeruli, where the incoming olfactory nerve fibers of the primary olfactory neurons establish synaptic contacts. Taken together the data show that chromogranin A, following biosynthesis in the perikarya of the mitral and tufted cells, is specifically transported into their axonal terminals but not into their primary dendrites. We propose that the rat olfactory system could serve as a model for the study of chromogranin A regulation and function in neurons

Processing and Transmission of Information

Contains reports on four research projects.Lincoln Laboratory (Purchase Order DDL-B222)United States Department of the ArmyUnited States Department of the NavyUnited States Department of the Air Force (Contract AF19(604)-5200

Sur la stabilité des E-feuilletages

Dans ce travail, nous résolvons un cas particulier du problème standard de la théorie des feuilletages qui est de trouver des conditions pour la stabilité d’une feuille compacte: une feuille compacte est stable si elle possède un système fondamental de voisinages saturés par rapport à la relation d’équivalence définie par les feuilles du feuilletage. Comme de nombreuses variétés différentiables ne possèdent pas de feuilletage, au sens classique, non trivial, nous nous intéressons à des feuilletages avec singularités et plus particulièrement aux E-feuilletages : un E-feuilletage F a la propriété d’être localement décrit par une application holomorphe appelée F-carte qui sépare les feuilles, c’est-à-dire une application qui factorise localement la projection canonique sur l’espace des feuilles. Ces feuilletages ont été étudiés pour la première fois dans la thèse de Egger. Pour une feuille compacte d’un E-feuilletage F, il n’est pas possible de définir un groupe d’holonomie car il n’y a pas de compatibilité biholomorphe entre les Fcartes. La compatibilité entre deux F-cartes fj :Uj −→ Vj, j = 1, 2, est donnée par une famille d’applications (uj :Z −→ Vj)j∈{1,2} appelée mont. Le comportement de F autour d’une feuille compacte est décrit par une famille finie de monts appelée massif que nous obtenons en recouvrant la feuille par un nombre fini de F-cartes. Nous reprenons et continuons dans cette thèse le travail de Egger en proposant une étude catégorique plus poussée des massifs. Ceci nous permet de définir différemment et plus simplement les germes d’holonomie, l’analogue au groupe d’holonomie que Egger a introduit. Les germes d’holonomie, dans le sens o`u nous les avons définis, nous donnent aussi un critère de stabilité. L’étude des germes d’holonomie définie par des E-feuilletages compacts de codimension 1 nous permet alors de démontrer que tous ces feuilletages sont stables: un feuilletage compact est stable si toutes ses feuilles sont stables. Il suit du théorème de Mattei-Moussu et du critère de simplicité de Reiffen que tous les feuilletages holomorphes compacts de codimension 1 définis sur une variété sont des E-feuilletages, nous avons donc trouvé une nouvelle démonstration de la stabilité de ces feuilletages.In this work, we solve a particular case of a standard problem of the theory of foliations which is to find conditions for the stability of a compact leaf. A compact leaf is stable if it possesses a fundamental system of neighborhoods saturated with respect to the equivalence relation defined by the leaves of the foliation. Since a lot of manifolds do not possess any foliation in the classical sense, that is not trivial, we study foliations with singularities and in particular the E-foliations. An E-foliation has the property to be locally described by a holomorphic mapping named F-chart which separates the leaves, i.e. a mapping that factorizes locally the canonical projection on the leafs space. This foliations have been studied first by Egger in his thesis. For a compact leaf of an E-foliation F it is not possible to define a holonomy group since there is no biholomorphic compatibility between the F-charts. The compatibility between two F-charts fj :Uj −→ Vj, j = 1, 2, is given by a family of applications (uj :Z −→ Vj)j∈{1,2} named a mountain. In order to know the behavior around a compact leaf we cover it with a finite number of F-charts and we obtain a finite family of mountains named massif. We develop further and complement the work of Egger proposing a more advanced categorical study of the massifs. This allows us to define the holonomy germs, i.e. the analogue to the holonomy group Egger introduced, in a different and simpler way. The holonomy germs, in the sense we defined them, also give a stability criterion. The study of the holonomy germs defined by 1-codimensional compact E-foliations allows us to prove the stability of these foliations. A compact foliation is stable if all its leaves are stable. The theorem of Mattei-Moussu and the simplicity criterion of Reiffen imply that all the 1-codimensional compact foliations defined on a manifold are E-foliations. Thus we have found a new proof of their stability

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Contains research objectives and reports on four research projects.Lincoln Laboratory, Purchase Order DDL-B222Department of the ArmyDepartment of the NavyDepartment of the Air Force under Contract AF19(122)-45

Immunological characterization of chromogranins A and B and secretogranin II in the bovine pancreatic islet

Antisera against chromogranin A and B and secretogranin II were used for analysing the bovine pancreas by immunoblotting and immunohistochemistry. All three antigens were found in extracts of fetal pancreas by one dimensional immunoblotting. A comparison with the soluble proteins of chromaffin granules revealed that in adrenal medulla and in pancreas antigens which migrated identically in electrophoresis were present. In immunohistochemistry, chromogranin A was found in all pancreatic endocrine cell types with the exception of most pancreatic polypeptide-(PP-) producing cells. For chromogranin B, only a faint immunostaining was obtained. For secretorgranin II, A-and B-cells were faintly positive, whereas the majority of PP-cells exhibited a strong immunostaining for this antigen. These results establish that chromogranins A and B and secretogranin II are present in the endocrine pancreas, but that they exhibit a distinct cellular localization

A new strategy against hostile takeovers: a model of defense in participations

This article examines the efficacy of a “defense in participations” policy consisting of competitors acquiring cross equity participations within the same industry to prevent hostile takeovers. This defense in participations strategy provides disincentive for raiders as partial ownerships increase market power of competitors and then reinforce the “outsider effect”. Also, we find conditions for a general result which states that takeovers are less profitable in an industry with participations rather than in an industry without any capital links. We provide information to regulators about the positive social impact of cross participations in the context of mergers, and expose an economic dilemma between a “laisser-faire” and an interventionist approach