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Abstract:
Credit ratings are a quasi-public good, and investors and financial markets regulators need an independent assessment of the credit-worthiness of an issuing entity because of information asymmetries and principal agent problems. In light of the high volatility of market-based measures and the failure of internal risk management, private CRAs are best fit for purpose. However, natural barriers of entry in the rating business and conflicts of interest have led to an inflation of ratings and a deterioration in their quality. It would thus appear that CRAs need closer supervision. While certainly burdensome and likely to raise barriers of entry, the European Commission's proposal seems to be the most sensible solution given the circumstances. Market discipline based on competition and transparency as envisioned in the US will lead to a weak surveillance regime, while leaving the regulatory license intact.

Credit rating agencies, financial regulation

Abstract:
This paper argues that transparency-boosting measures specifically tailored to commodity and commodity derivatives markets are much needed. In particular, encouraging the creation of a clearing infrastructure for OTC commodity and commodity derivatives markets would be desirable. Moreover, EU regulators should consider setting up a new, more effective market abuse regime aimed at preventing manipulation in both the physical and financial commodities markets. Finally, in cooperation with the G20, EU authorities should consider the creation of an International Commodity Agency to increase transparency and restore confidence in international physical markets for commodities.

The paper is structured as follows: Section 2 briefly discusses the fundamentals of commodity spot and futures markets. Section 3 presents both physical commodity markets and commodity derivative markets in their usual breakdown categories: agriculture, metals and energy. Section 4 discusses the regulations in the EU and the US concerning commodity derivatives. Section 5 advances certain policy proposals and the last section draws the conclusions.

Commodity derivatives, OTC, hedging, comparative financial regulation

Abstract:
This article seeks to demonstrate the stability of US-China monetary relations before and after the 2007-09 financial crisis. Domestic and international factors make the disruption of the US-China monetary relation extremely unlikely. On the domestic side, China faces a delicate political situation and US political rhetoric has not been matched with concrete measures. Internationally, China’s military independence supports its growing monetary power. Overall, China’s monetary power ensures internal autonomy from US pressure on currency revaluation rather than allow China to exert a significant external influence.

This contribution pushes forward the existing monetary power theory by developing new concepts and rationalising the existing literature. Moreover, it analyses the dynamics of monetary power with domestic and international arrangements.

China, monetary power, international political economy, global imbalances