Open Source has another dimension --J.P. Morgan's CDS Analytical Engine Available as Open Source

SDA Announces Agreement to Make J.P. Morgan's CDS Analytical Engine
Available as Open Source; Increases Transparency in CDS Pricing

At the centre of our current financial crisis is the CDS (credit default swap). ISDA is the trade association which draft standard contract for CDS.

The market was unable to give a reasonable and authority price for CDS in recent months. The open source decision is to make the price of CDS more stable and being open source, each one could validate the price components (market risk, liquidity risk, credit risk, FX risk and
others)

Open source when taking a transparent perspective could help to stable a market in crisis.

http://www.isda.org/press/press012909.html

Antony

Comments

Post a Comment

Popular posts from this blog

Risk on Radio

This morning I joined a talk show on RTHK and discussed risk of usnig credit cards. Media attendtion is high after the recent security breach at Cardsystems. The story was uncovered on 17 June 2005, but after 6 days it is still lingering on. WHY? First, I believe this incident is huge in terms of people affected. 40 million card numbers were lost. Secondly, it was uncovered on SAT. I am not joking. One of my lectures in a Crisis Management class told his student in class that when reporters are hungry for news, even lost of a penny can be headline news. On Saturday, when reporters unable to find new story, a incident like this one will be reported by every newspaper. Back to the talk show, there were few people called in. And one mentioned that when he visited a Indian online shop and was diverted to a HSBC credit card website. This website asked him to enter his personal information like birthday and passport number. He worried this may be fraudulent website and asked for advice. As
Read more

China Internet Security Law and WTO!?

There is a new Law effective in China being 1 March 2006. A brief outline is here http://news.xinhuanet.com/it/2005-12/29/content_3986087.htm The full legislation is here 互联网安全保护技术措施规定 . There are some interesting observations from an IT security perspective: 1. This regulation is under the regime of China Police Force. 2. Article 7.1.2 requires ISPs to have disaster recovery ability for vital database and system equipments. 3. Most of the regulation requires ISP or who operate internet services (loosely defined at Article 18) to record and store users login time, IP address, user account information and system logs. 4. ISP has to maintain records if they find any illegal materials being distributed to the public. (“What means by illegal in the China ?” is a mystery). 5. China Police could punish entity if they fail to perform Article 7 to 14. But there is no indication of what kinds of punishment should be. First, as a security professional, I appreciate China go
Read more

One source of poverty

A study focused on the effects of Wal-Mart stores on poverty rates found that an estimated 20,000 families nationwide have fallen below the official poverty line as a result of the chain's expansion. Although I have not read the whole report nor the article confirmed the research method is scientific, I agree with the author that "found that one of the greatest effects of a Wal-Mart opening is the closing of mom-and-pop-type operations."
Read more