Diversifying Clearinghouse Ownership In Order To Safeguard Free And Open Access To The Derivatives Clearing Market

Implementing the rigorous governance and ownership standards established in the Dodd-Frank Wall Street Reform and Consumer Protection Act3 for derivatives clearing organizations (DCOs) will promote free and open access to clearing and reduce systemic risk within what is now the $700 trillion notional value derivatives market. Such standards are central to and advance the key regulatory tenants of Dodd-Frank: i.e., to restore transparency, capital adequacy, and accountability to what was the unregulated over-the-counter (OTC) derivatives market by ensuring that swaps are cleared through financially sound DCOs. Also, these rules will promote competition by curtailing large swap dealers‘ (SDs) control over these markets to the disadvantage of swaps users. This article focuses on the importance of swaps clearing to Dodd-Frank-mandated market reforms and the need for fair and open access to that clearing. Specifically, it shows that implementing objective governance standards for DCOs that include maximum capital requirements for DCO membership will enhance market stability and efficiency. To this end, the article focuses exclusively on clearing as it lies at the heart of Dodd Frank market reforms. Also, although the article discusses the SEC‘s proposed rules on DCO governance and ownership, it primarily focuses on the CFTC‘s rulemaking for DCOs since the CFTC has jurisdiction over 85The article is divided into four parts. First, it shows that Congress intended the CFTC to adopt rigorous rules regarding DCO governance and ownership that eliminate the conflicts of interest that have allowed SDs to stifle competition for clearing services and to charge unnecessarily high transaction fees. Second, it explains how pre-Dodd-Frank market forces have limited access to clearing. Third, it shows that the CFTC‘s final rule on participant eligibility—particularly the rule establishing a$50 million threshold for DCO membership—promises to both improve swap users‘ access to clearing and ensure greater stability within the derivatives clearing market. Finally, the article argues that the CFTC should strengthen its proposed governance standards for DCOs in order to safeguard swap users‘ access to clearing against the possibility that the CFTC‘s participant eligibility requirements fail to increase DCO membership

Ladder proof of nonlocality for two spin-half particles revisited

In this paper we extend the ladder proof of nonlocality without inequalities for two spin-half particles given by Boschi et al [PRL 79, 2755 (1997)] to the case in which the measurement settings of the apparatus measuring one of the particles are different from the measurement settings of the apparatus measuring the other particle. It is shown that, in any case, the proportion of particle pairs for which the contradiction with local realism goes through is maximized when the measurement settings are the same for each apparatus. Also we write down a Bell inequality for the experiment in question which is violated by quantum mechanics by an amount which is twice as much as the amount by which quantum mechanics violates the Bell inequality considered in the above paper by Boschi et al.Comment: LaTeX, 7 pages, 1 figure, journal versio

Mermin's n-particle Bell inequality and operators' noncommutativity

The relationship between the noncommutativity of operators and the violation of the Bell inequality is exhibited in the light of the n-particle Bell-type inequality discovered by Mermin [PRL 65, 1838 (1990)]. It is shown, in particular, that the maximal amount of violation of Mermin's inequality predicted by quantum mechanics decreases exponentially by a factor of 2^{-m/2} whenever any m among the n single-particle commutators happen to vanish.Comment: LaTeX file, 10 page

Preparation of n-qubit Greenberger-Horne-Zeilinger entangled states in cavity QED: An approach with tolerance to nonidentical qubit-cavity coupling constants

We propose a way for generating $n$-qubit Greenberger-Horne-Zeilinger (GHZ) entangled states with a three-level qubit system and (n-1) four-level qubit systems in a cavity. This proposal does not require identical qubit-cavity coupling constants, and thus is tolerant to qubit-system parameter nonuniformity and nonexact placement of qubits in a cavity. The proposal does not require adjustment of the qubit-system level spacings during the entire operation. Moreover, it is shown that entanglement can be deterministically generated using this method and the operation time is independent of the number of qubits. The present proposal is quite general, which can be applied to physical systems such as various types of superconducting devices coupled to a resonator or atoms trapped in a cavity.Comment: 3 figures, accepted by Phys. Rev.

A feasible quantum optical experiment capable of refuting noncontextuality for single photons

Elaborating on a previous work by Simon et al. [PRL 85, 1783 (2000)] we propose a realizable quantum optical single-photon experiment using standard present day technology, capable of discriminating maximally between the predictions of quantum mechanics (QM) and noncontextual hidden variable theories (NCHV). Quantum mechanics predicts a gross violation (up to a factor of 2) of the noncontextual Bell-like inequality associated with the proposed experiment. An actual maximal violation of this inequality would demonstrate (modulo fair sampling) an all-or-nothing type contradiction between QM and NCHV.Comment: LaTeX file, 8 pages, 1 figur

Comment on "Bell's Theorem without Inequalities and without Probabilities for Two Observers"

In this Comment we show that Cabello's argument [Phys. Rev. Lett. 86, 1911 (2001)] which proves the nonlocal feature of any classical model of quantum mechanics based on Einstein-Podolsky-Rosen (EPR) criterion of elements of reality, must involve at least four distant observers rather than the two employed by the author. Moreover we raise a remark on the necessity of performing a real experiment confirming Cabello's argument.Comment: 1 page, REVTex4 fil

Bell's theorem without inequalities and without alignments

A proof of Bell's theorem without inequalities is presented which exhibits three remarkable properties: (a) reduced local states are immune to collective decoherence; (b) distant local setups do not need to be aligned, since the required perfect correlations are achieved for any local rotation of the local setups; (c) local measurements require only individual measurements on the qubits. Indeed, it is shown that this proof is essentially the only one which fulfils (a), (b), and (c).Comment: REVTeX4, 4 page

Conditions for the confirmation of three-particle non-locality

The notion of genuine three-particle non-locality introduced by Svetlichny \cite{Svetlichny} is discussed. Svetlichny's inequality which can distinguish between genuine three-particle non-locality and two-particle non-locality is analyzed by reinterpreting it as a frustrated network of correlations. Its quantum mechanical maximum violation is derived and a situation is presented that produces the maximum violation. It is shown that the measurements performed in recent experiments to demonstrate GHZ entanglement \cite{Bouwmeester}, \cite{Pan} do not allow this inequality to be violated, and hence can not be taken as confirmation of genuine three-particle non-locality. Modifications to the experiments that would make such a confirmation possible are discussed.Comment: minor revisions, references adde