DOCSLIB.ORG

2019 Integrated Report

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2019 Integrated Report One Bank, One Team, 2019 One UniCredit. Capital and balance Integrated ReportIntegrated sheet management Transform Enhanced service model Ethics and Respect Team 23 Compliance Grow and strengthen client franchise Process Growth optimisation engines Sustainable Customer results experience Sustainability Disciplined risk management Paperless bank “Go-to” bank for SMEs 2019 “Do the right thing!” Integrated Report Our sustainable value creation Consolidated Non-Financial Statement pursuant to Legislative Decree 254/2016 unicreditgroup.eu Report structure UniCredit has prepared this document in compliance with the requirements of Art. 3 and 4 of the Legislative Decree 254/2016, which implements European Directive 2014/95/EU in Italy, and is part of UniCredit’s principled effort to further develop its compliance with the European Commission’s Guidelines on non-financial reporting and advance understanding of all aspects of its business. The Integrated Report (the “Report”) has been approved by the Board of Directors of UniCredit SpA on March 5th, 2020 and has been produced by the Group Sustainability & Foundation function, in collaboration with the Strategy and M&A function. Since 2017, in line with the requirements of Legislative Decree 254/2016, a specific policy was adopted to define the roles, responsibilities, activities and controls and to coordinate the flow of information between the parent company, regions, divisions and legal entities in relation to the process of preparing the Consolidated Non-Financial Statement (“NFS”). As foreseen by Article 5 of the Legislative Decree 254/2016, this document constitutes a separate report marked with a specific heading, to allow its reconciliation with the NFS required by the regulation. The Report should be considered in its entirety, including its Supplement, which is here enclosed or available in the Sustainability section of our website (www.unicreditgroup.eu) and contains a number of essential indicators and underlying quantitative data. The guidelines adopted for the preparation of the sustainability information included in the 2019 Integrated Report, including its Supplement, are the “GRI Sustainability Reporting Standards” and the “Financial Services Sector Disclosures,” issued, respectively, in 2016 and 2013 by the GRI - Global Reporting Initiative. The performance indicators reported in accordance to the guidelines adopted are included in the “GRI Content Index” section. The principles contained in the International <IR> Framework, published in December 2013 by the International Integrated Reporting Council (IIRC), were also used as reporting framework. Figures and information relating to the Scope 1, Scope 2 and Scope 3 classes of greenhouse gas emissions have been prepared in accordance with “The Greenhouse Gas Protocol: A Corporate, Accounting and Reporting Standard (Revised Edition, 2004)” as well as the “GRI Sustainability Reporting Standards.” The information in the Report addresses the issues that were identified as material and their associated indicators, which reflect the main economic, environmental and social impacts of the Group or could have a substantial influence on the views and decisions of its stakeholders. The materiality analysis, updated in 2019, was fundamental to the Report and determined the topics to be reported on, in line with stakeholders’ needs. Following the analysis of the relevant topics indicated in Article 3 of the Legislative Decree 254/2016, the use of water was not considered significant for the representation in this NFS. The content of this Report refers to the year 2019 and, in particular, to the activities of UniCredit during the year, unless otherwise stated. Figures relating to previous years are provided for comparison and refer mainly to the 2018 fiscal year. Concerning the reporting perimeter, in line with previous years the legal entities consolidated on a line by line basis by UniCredit SpA have been analyzed in order to identify the relevant companies and ensure the Report would provide a proper understanding of the Group’s activities, development, performance and relevant impacts. In particular, with reference to year 2019, data and information related to FinecoBank S.p.A. and Ocean Breeze Energy GmbH & Co. KG have been excluded from the reporting perimeter, following the deconsolidation of FinecoBank S.p.A. and the sale to Macquarie Infrastructure and Real Assets of the 100% of Ocean Breeze Energy GmbH & Co. KG, finalized on May 10, 2019 and in December 2019 respectively. This new reporting perimeter represents 98 percent of Group’s FTEs. Community contribution and initiatives in support of Communities included in the “Social and relationship Capital” chapter include data and information related to UniCredit Foundation - Fondazione di studio in onore del Cavaliere del Lavoro Ugo Foscolo (the “UniCredit Foundation”), not included in the perimeter of the consolidated financial statements. The data reported in the paragraph of the Supplement “Compliance - Whistleblowing” refers to the legal entities currently monitored and considered relevant by Group Compliance. For figures related to staffing and calculations of the Value Added, the perimeter of the Report corresponds to the 2019 consolidated financial statements, unless otherwise indicated. Any conditions that may limit the scope of the data are clearly disclosed throughout the Report. To ensure reliability, the Report includes directly measurable quantities and limits the use of estimates as much as possible. Potential estimates are based on the best available information or spot checks. Restatements of previously published figures that have been provided for comparison are clearly indicated as such. This Report has been externally assured by an independent assurance provider in accordance with the criteria established in the principle “ISAE 3000 Revised”. Its conclusions regarding the compliance of the information provided with Article 3, paragraph 10, of the Legislative Decree 254/2016 are set out in a separate external assurance report. The procedures followed for the assurance of the NFS are disclosed in the “Report of the External Auditors”, included in this Report. During 2019, we made further steps towards the completion of our path of integrating more and more sustainability into our business plans and strategies, in line with the strategic sustainability targets announced last November 2019, and that we plan to achieve with the involvement of all the corporate functions and under the guidance of the Board of Directors and senior management. For the main targets and commitments, for the description of the strategic approach to relevant non-financial issues as well as for the principal generated or perceived risks in relation to those issues and how they are managed, please refer to the relevant Chapters of this Report. With reference to climate change, both scientific evidence and increasing shareholder awareness have made taking action a priority for UniCredit. Under such circumstances, UniCredit has adopted the recommendations issued by the Task Force on Climate-Related Financial Disclosures (TCFD). For further information concerning the actions undertaken from UniCredit in this regard, please refer to chapter Task Force on Climate-Related Financial Disclosures (TCFD) of the Integrated Report. 2 UniCredit • 2019 Integrated Report Index Chief Executive Officer’s Message 4 Ethics and respect 14 Our Purpose & Identity 18 Our Value Creation over time 20 Governance 22 Risk Management and Compliance 24 Our Business Environment 30 Business Model in action 32 Our Strategy 34 Stakeholder Engagement 36 Strategic plan 46 Transform 2019 47 Team 23 50 Grow and strengthen client franchise 51 Transform and maximise productivity 54 Disciplined risk management & controls 55 Capital and balance sheet management 57 Sustainability as part of UniCredit DNA 57 Capitals 64 Financial Capital 64 Human Capital 66 Social and relationship Capital 70 I Intellectual Capital ine eti 84 Natural Capital 88 Cer erit Task Force on Climate-related Financial Disclosures (TCFD) 94 ae to toer air ine eaior GRI Content IndexCiate and ange UN Global Compact 102 Report of the External Auditors 113 ean and tranparent organiation Supplement an oidit Determination and distribution of Value Added S. 2 Main partnerships and affiliationsigitaiation and innoation S. 4 Selection of 2019 awards S. 8 Governance oitie ipat on oiet S. 10 Risk Management and Compliance S. 16 Relevance for stakeholders poeeStakeholder epoerent Engagement S. 30 Human Capital S. 32 ierit and inion Social and relationship Capital S. 48 Natural Capital S. 54 eograpi ange In order to guide and support the reading of our Integrated Report, through the icons here below you can find a visual IU representation of the clusters and the related material topics that are presented in our materiality matrix. The same icons areC also reported in the last page of our cover, whichUniCredit can be Approachopened and used as a reference while readingI the report. C On the right page of every chapter the referenced material topics are visually represented through the same icons. Clusters INNOVATION LEAN AND PEOPLE ETHICS SYSTEMIC POSITIVE FOR CUSTOMER SOLID BANK DEVELOPMENT TRENDS IMPACT ON SOCIETY UniCredit • 2019 Integrated Report 3 Chie Executive Oficer's message e awa avor ongter tainae otoe oer ortter otion Ti i a ke piar o or ne pan Tea 2 i i deier 1n o vae reation ean Pierre Mustier Cie etie Ofier ear taeoder 2019 a a er iportant ietone or
Load more

Recommended publications
  • Sales Representatives Manual 2020
    Sales Representatives Manual Volume 4 2020 Volume 4 Table of Contents Chapter 1 Overview of Derivatives Transactions ………… 1 Chapter 2 Products of Derivatives Transactions ……………99 Derivatives Transactions and Chapter 3 Articles of Association and ……………… 165 Various Rules of the Association Exercise (Class-1 Examination) ……………………………………… 173 Chapter 1 Overview of Derivatives Transactions Introduction ∙∙∙∙∙∙∙∙ 3 Section 1. Fundamentals of Derivatives Transactions ∙∙∙∙∙∙∙∙ 10 1.1 What Are Derivatives Transactions? ∙∙∙∙∙∙∙∙ 10 Section 2. Futures Transactions ∙∙∙∙∙∙∙∙ 10 2.1 What Are Futures Transactions? ∙∙∙∙∙∙∙∙ 10 2.2 Futures Price Formation ∙∙∙∙∙∙∙∙ 14 2.3 How to Use Futures Transactions ∙∙∙∙∙∙∙∙ 17 Section 3. Forward Transactions ∙∙∙∙∙∙∙∙ 24 3.1 What Are Forward Transactions? ∙∙∙∙∙∙∙∙ 24 Section 4. Option Transactions ∙∙∙∙∙∙∙∙ 25 4.1 What Are Options Transactions? ∙∙∙∙∙∙∙∙ 25 4.2 Options’ Price Formation ∙∙∙∙∙∙∙∙ 32 4.3 Characteristics of Options Premiums ∙∙∙∙∙∙∙∙ 36 4.4 Sensitivity of Premiums to the Respective Factors ∙∙∙∙∙∙∙∙ 38 4.5 How to Use Options ∙∙∙∙∙∙∙∙ 46 4.6 Option Pricing Theory ∙∙∙∙∙∙∙∙ 57 Section 5. Swap Transactions ∙∙∙∙∙∙∙∙ 63 5.1 What Are Swap Transactions? ∙∙∙∙∙∙∙∙ 63 Section 6. Risks in Derivatives Transactions ∙∙∙∙∙∙∙∙ 72 Conclusion ∙∙∙∙∙∙∙∙ 82 Introduction Introduction 1. History of Derivatives Transactions Chapter 1 The term “derivatives” is used for financial instruments that “derive” from financial assets, meaning those that have securities such as shares or bonds as their underlying assets or financial transactions that use a reference indicator such as interest rates or exchange rates. Today the term “derivative” is used widely throughout society and not just on the financial markets. Although there has been criticism that they amplify financial risks and have a harmful impact on the Chapter 2 economy, derivatives are an indispensable requirement in supporting finance in the present age, and have become accepted as the leading edge of financial innovation.
    [Show full text]
  • A Glossary of Securities and Financial Terms
    A Glossary of Securities and Financial Terms （English to Traditional Chinese） 9-times Restriction Rule 九倍限制規則 24-spread rule 24 個價位規則 1 A AAAC see Academic and Accreditation Advisory Committee【SFC】 ABS see asset-backed securities ACCA see Association of Chartered Certified Accountants, The ACG see Asia-Pacific Central Securities Depository Group ACIHK see ACI-The Financial Markets of Hong Kong ADB see Asian Development Bank ADR see American depositary receipt AFTA see ASEAN Free Trade Area AGM see annual general meeting AIB see Audit Investigation Board AIM see Alternative Investment Market【UK】 AIMR see Association for Investment Management and Research AMCHAM see American Chamber of Commerce AMEX see American Stock Exchange AMS see Automatic Order Matching and Execution System AMS/2 see Automatic Order Matching and Execution System / Second Generation AMS/3 see Automatic Order Matching and Execution System / Third Generation ANNA see Association of National Numbering Agencies AOI see All Ordinaries Index AOSEF see Asian and Oceanian Stock Exchanges Federation APEC see Asia Pacific Economic Cooperation API see Application Programming Interface APRC see Asia Pacific Regional Committee of IOSCO ARM see adjustable rate mortgage ASAC see Asian Securities' Analysts Council ASC see Accounting Society of China 2 ASEAN see Association of South-East Asian Nations ASIC see Australian Securities and Investments Commission AST system see automated screen trading system ASX see Australian Stock Exchange ATI see Account Transfer Instruction ABF Hong
    [Show full text]
  • Table of Contents
    Trading Spreads and Seasonals Chapter 1 What Is a “Spread?” If you already know what a spread is, you may be tempted to skip this initial chapter. However, I advise against it. Besides being presented for those who know, it is presented here for those who are not sure, and also for those who know that they know that they don’t know. I have been amazed at the number of traders who show up at my seminars who do not know what a spread is. Additionally, they do not know its numerous purposes or its many uses. A Spread is... For purposes of this book, a spread is defined as the sale of one or more futures contracts and the purchase of one or more offsetting futures contracts. You can turn that around and state that a spread is the purchase of one or more futures contracts and the sale of one or more offsetting futures contracts. A spread is also created when a trader owns (is long) the physical vehicle and offsets by selling (going short) futures. However, this course will not cover the long physicals, short futures types of spreads. Furthermore, for purposes of this course, a spread is defined as the purchase and sale of one or more offsetting futures contracts normally recognized as a spread by the futures exchanges. This explicitly excludes those exotic spreads that are put forth by some vendors but are nothing more than computer generated coincidences which will not be treated as spreads by the exchanges. Such exotic spreads as long Trading Spreads and Seasonals Bond futures and short Bean Oil futures may show up as reliable computer generated spreads, but they are not recognized as such by the exchanges, and are in the same category with believing the annual performance of the US stock market is somehow related to the outcome of a sporting event.
    [Show full text]
  • INTRODUCTION to COTTON FUTURES Blake K
    INTRODUCTION TO COTTON FUTURES Blake K. Bennett Extension Economist/Management Texas Cooperative Extension, The Texas A&M University System Introduction For well over a century, industry representatives have joined traders and investors in the New York Board of Trade futures markets to engage in price discovery, price risk transfer and price distribution of cotton. In fact, the first cotton futures market contracts were traded in New York in 1870. From that time, the cotton futures market has grown in use, but still provides the same services it did when trading began. For the novice, futures market trading may seem chaotic. However there is a reason for every movement, gesture, and even the color of jacket the traders wear on the trading floor. All these elements come together to provide the world a centralized location where demand and supply forces are taken into consideration and market prices are determined for commodities. Having the ability to take advantage of futures market contracts as a means of shifting price risk is a valuable tool for producers. While trading futures market contracts may be a relatively easy task to undertake, understanding the fundamental concept behind how these contracts are used from a price risk management standpoint is essential before trading begins. This booklet will assist cotton producers interested in gaining or furthering their knowledge in terms of using futures contracts to hedge cotton price risk. Who Are The Market Participants? Any one person, group of persons, or firm can trade futures contracts. Generally futures market participants fall into two categories. These categories are hedgers and speculators.
    [Show full text]
  • Notes & Comments
    NOTES & COMMENTS THE TAX-STRADDLE CASES The use of commodity futures "straddle" or "spread" transactions to reduce tax burdens is a time-honored practice.' Because of their in- creased popularity over the past decade, tax straddles have recently re- ceived a great deal of attention from the Treasury Department2 and from Congress.3 The Treasury Department has issued revenue rulings disapproving of the practice 4 and has challenged thousands of tax re- turns in which taxpayers offset losses generated by straddle transactions against other income. 5 In the first case to reach trial, Smith v. Commis- sioner,6 the United States Tax Court denied the straddle losses claimed by the taxpayers because the taxpayers lacked the requisite profit mo- 1. 12 TAX NOTES 209, 209 (1981) (testimony of Secretary of the Treasury Donald T. Regan at his confirmation hearing before the Senate Finance Committee (Jan. 6, 1981)). 2. See IRS, EXAMINATION TAX SHELTERS HANDBOOK, reprinted in Silver Prices and the Adequacy ofFederalActions in the Marketplace,1978-80. HearingsBefore the Subcomm. on Com- merce, Consumer and Monetary Affairs of the House Comm on Government Operations, 96th Cong., 2d Sess. 368-69 (1980) (hereinafter cited as Silver Prices); Lewis, The Treasury'r Latest Attack on Tax Shelters, I1 TAX NOTES 723, 723 (1980). 3. See Economic Recovery Tax Act of 1981, Pub. L. No. 97-34, §§ 501-509, 95 Stat. 172. This statute dramatically alters the tax treatment of commodity futures transactions by prospec- tively eliminating the claimed losses from tax straddles. Section 503 of the Act requires unrealized gains and losses in open futures positions to be valued by referral to their market prices on the last day of the tax year and to adjust taxable income accordingly.
    [Show full text]
  • Yield Curve Spreads Are Mean Reverting
    PRICING AND CHARTING YIELD CURVE SPREADS A guide to trading US and Au bond futures KEIRAN HORTH & GUY BOWER Contents 1. Basic Definitions 2. Using DV01s 3. Calculating Hedge Ratios 4. Directional Spreading Versus Hedging 5. Changing Slope of the Yield Curve 6. Factors Affecting the Shape of the Yield Curve 7. Charting Your Spread 8. Filtering Data 9. Alternate Method of Charting a Spread 10. Varying the Spread Ratio 11. Trading the Spread 12. When is a Spread Not a Spread 13. Some Spreading Research Ideas 14. Contract Specs and Trading Information Disclaimer Trading involves high risks, with potential for profits as well as substantial losses and is not suitable for all persons. No information in this document or related material should be considered advice or any kind. Propex suggest you seek advice from an independent investment professional as to the suitability of trading for your personal needs. Propex Derivatives Pty Ltd. Level 4, 299 Elizabeth Street, Sydney NSW 2000. Propex Derivatives Pty Ltd (Propex) is a Proprietary Full Participant of the Sydney Futures Exchange. © Propex Derivatives. Horth & Bower Introduction OK, let’s talk relative value. Spread trading is all about relative value. Spread trading is all about understanding how two (or more) markets relate to each other and recognising when there is opportunity based on current levels or a view on the future. Here we are going to look at some interest rate spreads, how to price them and how to chart them. For the newcomer, it is easy to get prices and yields mixed up given their inverse relationship.
    [Show full text]
  • Financial Lexicon a Compendium of Financial Definitions, Acronyms, and Colloquialisms
    Financial Lexicon A compendium of financial definitions, acronyms, and colloquialisms Erik Banks Financial Lexicon A compendium of financial definitions, acronyms, and colloquialisms ERIK BANKS © Erik Banks 2005 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2005 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y.10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan® is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 1–4039–3609–9 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress.
    [Show full text]
  • Futuresspreadsproductguide Or
    PRODUCT INTRODUCTION BenchMark Finance offers clients online trading trading Futures Spread as it involves two legs, in Futures Spreads from the main Exchange the clients will be charged two legs. around the world starting with Globex and rolling-out gradually to Europe and APAC Commissions for Futures spread are the same exchanges. Futures Spreads are tradable from as for Futures Contract. From 0 to 5,000 lots the awardwinning downloadable BenchMark per month they are visible on the Trader, web-based WebTrader, BenchMark Benchmark.bg. Above 5,000 lots per month Trader for iPhone, Android and iPad. the client can expect bespoke pricing. BenchMark Finance supports Limit and Market BenchMark Finance Futures Spread orders on Futures Spreads, Stop orders are Unique not supported. The initial margins listed in Selling Points Online contracts specification are the collateral per contract that clients must have in their • Roll over the next front month very easily. account to open a position. • Trade Futures Spread Strategies on With the introduction of Risk Based Portfolio agricultural products, oil and energies, base Margin on Futures Spread positions, metals, precious metals, bonds, currencies, BenchMark Finance will be able to apply lower shortterm interest rates, live stocks, softs and margins on spread positions, while stock indices from one trading platform and maintaining sufficient margin levels reflecting enjoy margin benefits. the actual risk on the client’s positions more closely. • Free access to Globex real-time market data for Benchmark’s customers. Clients must maintain the Maintenance Margins listed per Futures Spread contract in their account at all times. If the funds in an • Free Hightower report, the comprehensive account fall below this margin, clients will be daily research on the Futures markets subject to a margin call to either deposit more available directly through BenchMark’s funds to cover positions or close positions.
    [Show full text]
  • Wiley Finance : Derivatives Demystified : a Step-By-Step Guide
    Derivatives Demystified For other titles in the Wiley Finance series please see www.wiley.com/finance Derivatives Demystified A Step-by-Step Guide to Forwards, Futures, Swaps and Options Second Edition Andrew M. Chisholm A John Wiley and Sons, Ltd., Publication This edition first published 2010 C 2010 John Wiley & Sons, Ltd Registered office John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com. The right of the author to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered.
    [Show full text]
  • A Glossary of Securities and Financial Terms
    A Glossary of Securities and Financial Terms （English to Simplified Chinese） June 2014 CONTENTS A .................................................................................................................................................... 1 B .................................................................................................................................................... 8 C .................................................................................................................................................. 13 D .................................................................................................................................................. 28 E ................................................................................................................................................... 34 F ................................................................................................................................................... 40 G .................................................................................................................................................. 45 H .................................................................................................................................................. 48 I .................................................................................................................................................... 55 J ..................................................................................................................................................
    [Show full text]
  • CFTC Supplements Position Limits Proposal
    June 3, 2016 CFTC Supplements Position Limits Proposal The CFTC Supplements Its Position Limits Proposal by Revising the Proposed Definition of Bona Fide Hedging and Including a Provision that Would Permit Exchanges to Recognize Non-Enumerated Bona Fide Hedges and Other Exemptions SUMMARY On May 26, 2016, the U.S. Commodity Futures Trading Commission (the “CFTC”) released a supplemental notice of proposed rulemaking along with a proposed rule (the “Supplemental Proposal”) that would supplement and amend the proposed rule originally released by the CFTC in December 2013 (the “2013 Proposed Rule”) that would impose speculative position limits on positions held by traders in 28 physical commodity futures contracts, options and “economically equivalent” futures and swaps contracts. The Supplemental Proposal includes three key changes as compared to the 2013 Proposed Rule, each largely aimed at addressing concerns raised by commercial entities. First, the Supplemental Proposal would provide a new process allowing trading facilities, including designated contract markets (“DCMs”) and swap execution facilities (“SEFs”), to recognize certain positions in commodity derivative contracts as non-enumerated bona fide hedges or enumerated anticipatory bona fide hedges, as well as to exempt from federal position limits certain spread positions, in each case subject to CFTC review. Second, the Supplemental Proposal would amend certain definitions originally proposed in the 2013 Proposed Rule, notably including the definition of “bona fide hedging” for physical commodities. Lastly, the Supplemental Proposal would delay the requirement that DCMs and SEFs establish and monitor position limits on swaps where the DCM or SEF lacks access to sufficient swap position information. Comments on the Supplemental Proposal will be due 30 days after the Supplemental Proposal is published in the Federal Register.
    [Show full text]
  • The Economic Role of Traditional Commodity Futures Markets Anne E
    © 1985 by the American Enterprise Institute for Public Policy Research, Washington, D.C. All rights reserved. 1 The Economic Role of Traditional Commodity Futures Markets Anne E. Peck The concepts and techniques of futures trading have recently been introduced to markets for commodities vastly different from the agri­ cultural markets in which the system of trading first developed and to which it was largely constrained for nearly 100 years. In fact, metals futures markets were the only exceptions to the agricultural bounds of futures trading until 1972 and the introduction of currency futures markets. The de facto bounds arose in part from a regulatory vacuum. Before 1974 futures trading was regulated by the Commod­ ity Exchange Authority (CEA), a bureau in the U.S. Department of Agriculture. The CEA did not regulate the introduction of new futures markets, nor did it regulate futures markets other than those for domestic agricultural products (and it regulated those only after the initiation of trading had been shown to be a success). The absence of an explicit regulatory authority for all futures trading meant that innovative proposals in new products had to be approved by the regulators, if any, of the underlying markets. The original proposal of the Chicago Board of Trade (CBT) in the late 1960s and early 1970s to begin a futures market in securities issues is illustrative. The CEA had no interest in the proposal; but, since the proposal involved securities, the Securities and Exchange Commission (SEC) was interested. Indeed, the SEC asserted regu­ latory authority over the proposal and rejected it.
    [Show full text]