【正文】 the marktmarket methodology widely used in many traditional risk management systems is different to that of Algorithmics’ maketofuture methodology in that it focuses on instantaneous or spot information。Unit 17 Risky Business[Text]Capital markets have been continually hampered with unpredictable circumstance that can be considered “nonnormal behavior”.Most recently, the horror hedge fund of Long Term Capital Management provides a good example of the volatility of market. These types of nonnormal behavior in capital markets will keep even the best risk managers of the world’s leading banks awake at night. Add to this the advances in telemunication technology and global markets and transactions can originate anywhere in the world in a short time span.As a result, world market prices are more volatile as information travels faster, which makes keeping track of price movements increasingly difficult. Although risk management systems are less helpful in extreme situationswhere the market behaves abnormally and millions of dollars can be lostthey can give risk managers some control over “normal” behavior.Consideration should be given to a system’s limitations。他們從其錯(cuò)誤中吸取教訓(xùn)至少比任何監(jiān)管當(dāng)局都要快。b. The banks and securities houses dealing in derivatives in a big way are not passive beneficiaries of the wisdom of their regulators. They have sophisticated riskmanagement systems (on some cases the product of bitter experience), particularly for their options positions, which help them react to sudden sharp movements in prices. They learn from their errors at least as fast as any regulator could do. And they are being constantly prodded by creditrating agencies and by corporate customers who are ever choosier about the institutions with which they will dealdemanding a topnotch credit rating for longer dated business.b、 大規(guī)模參與衍生物交易的銀行和證券機(jī)構(gòu)并不是其監(jiān)管當(dāng)局所采取明智決策的被動(dòng)收益人。這一信用風(fēng)險(xiǎn)管理模式的變化最終需要將金融機(jī)構(gòu)中的信用功能和過程進(jìn)行徹底的再造以及對(duì)銀行業(yè)的性質(zhì)進(jìn)行重新的定義。This moditization of credit has the potential to fundamentally alter the nature of credit risk management and banking generally. The modern credit risk management models will emphasis the management of credit in a portfolio context and the trading of credit risk. The shift in the credit risk management paradigm will ultimately require a plete reengineering of the credit function and process within financial institutions and redefined the nature of banking.這種信用的商品化可能會(huì)極大地改變信用風(fēng)險(xiǎn)管理以及整體銀行業(yè)的性質(zhì)。Inflation was spiraling in those years.Any affairs in the world can’t daunt the outstanding Chinese people.8．Facing a group of investors with educational level of primary school, I’m having a hard time getting the question of financial derivative products across.7．We plan to elongate the cooperation with that pany in Australia.6．You will certainly benefit from this bargain.5．t be impulsive and have better think thoroughly before action.4． 股票市場(chǎng)上行情變幻莫測(cè)，切莫意氣用事，最好三思而行。 霸菱銀行的破產(chǎn)與里森的投機(jī)行為有直接的聯(lián)系。 蘇聯(lián)解體之后，如果核武器擴(kuò)散開來，會(huì)對(duì)世界和平造成威脅。 Assessment The more that derivative proliferates, the more panies will be linked together by these elongated promises and the harder it will be to arrive at a proper assessment of the risks they bear.12. but a bargain overhangs them.11. He then stands to make ten times of the profit, or ten times the loss, which he might make by buying $1m worth of bonds outright today and holding them for three months.10. But even concatenation such as these then to be constructed from simple elements known to the financial markets for literally centuries.9.G feel foul of what market professionals call a “diff swap”, a sort of bet on the rate at which German and American threeyear interest rates would converge.8.The Chinese missary reaffirmed that we wouldn’t give up using the weapon to acplish the national reunification in this kind of occasions.This puter is not function.9．The new manager embanked the pany governance as soon as he took the position.8．This affair cannot help making people reminiscent the Russian’s financial crisis.7．He has been working in Wall Street for ten years, no wander that he knows so many financial issues.6． 5． “遏制中國”政策的破產(chǎn)在當(dāng)今國際政治與經(jīng)濟(jì)形勢(shì)中實(shí)屬必然。 這一資產(chǎn)定價(jià)方法缺乏扎實(shí)的理論根基。 我已委托她來管理我的金融資產(chǎn)。 王教授舉例說明了股指期權(quán)的操作原理。 We would look to the standardsetting agencies to play an active role in developing methodologies for assessing observance of their standards. IOSCO was among the first agencies to make a concerted response to the crisis, rapidly bringing to pletion in Nairobi last September a set of Objectives and Principles of Securities Regulation that provide a pragmatic launching pad for national regulators to establish codes tailored to their own countries.13. No wonder that a number of countries have hesitated to expose themselves to such a risky environment.12. We are already living in the 21st century but with an absence of universally accepted rules and standards reminiscent of the domestic environment that prevailed at the end of the 19th century in the industrial countries.11. A consensus is clearly crystallizing on the need to establish at the international level the discipline that has progressively e to prevail in domestic markets.10. tall/large order8. golden rule7. It would also be a world that benefits from the existence of international institutions with welldefined, but constantly evolving, mandates that promote the smooth functioning of markets and economies and, as far as the IMF is concerned, could strengthen and , if needed, broaden further its surveillance to better promote the stability of the global system.6. And a consistently stable macroeconomic framework will be a sine qua non of national and global stability.5. The emerging consensus reaffirms a world economy based on free market mechanismson open trade and capital movementsbuttressed by sound national financial systems and by good public and c