In a Futures-Exchange, such as the Chicago Mercantile Exchange, traders buy and sell contractual promises (futures) to acquire or deliver, at some future pre-specified date, assets ranging from wheat to crude oil and from bacon to cash in a desired currency. The interactions between economic and security properties and the exchange's essentially non-monotonic security behavior; a valid trader's valid action can invalidate other traders' previously valid positions, are a challenge for security research. We show the security properties that guarantee an Exchange's economic viability (availability of trading information, liquidity, confidentiality of positions, absence of price discrimination, riskmanagement) and an attack when traders' anonymity is broken. We describe all key operations for a secure, fully distributed Futures-Exchange, hereafter referred to as simply the 'Exchange'. Our distributed, asynchronous protocol simulates the centralized functionality under the assumptions of anonymity of the physical layer and availability of a distributed ledger. We consider security with abort (in absence of honest majority) and extend it to penalties. Our proof of concept implementation and its optimization (based on zk-SNARKs and SPDZ) demonstrate that the computation of actual trading days (along Thomson-Reuters Tick History DB) is feasible for low-frequency markets; however, more research is needed for high-frequency ones. FuturesMEX technologies are the object of the following patent applications: US62/625,428 and PG448130GB. 1 On the CME, futures contracts range from bushels of corn to Euro/US$ exchange rates. Recently, CBOE and CME launched Bitcoin futures markets. These are 'cash-futures', that is as they are settled in cash. Eurodollars futures are the largest world market by notional volume: in quadrillions of dollars/year.
This paper assesses the extent to which intermediary capital (IC) risk contributes toward explaining commodity futures returns. We find that the IC effect is substantially positive and continues to grow as the financialization of commodities deepens. Positive and negative IC risks play asymmetric roles, with the effect of negative IC strengthening in recent subperiods. We further confirm the heterogeneous roles of IC across individual commodities by crosssection analyses. Overall, the effect of the positive IC risk factor varies significantly. Portfolios with low basis, low open interest, low momentum, and low liquidity earn significantly higher returns than counterparty portfolios.
Dairy cattle brucellosis is a chronic bacterial disease, which is caused by Brucella abortus and mainly characterized by abortion in dairy cattle. With the rapid development of breeding industry of milk cows in China, the infectious cases of dairy cattle brucellosis show an increasing trend. Particularly in Jilin province, the annual number of the positive cases of dairy cattle was only 3 cows in 1987, and went up to 168 cows in 2005. Based on the situation of the brucellosis infection in Jilin province, we propose an Susceptible-Exposed-Infected-Virus (SEIV) dynamical model with outside transferred amount to describe the transmission of brucellosis amongst dairy cattle in this paper. We calculate the basic reproduction number R0 and prove that the equilibria are globally stable. Moreover, using the real data of nearly 20 years in Jilin province, we estimate the parameter values in the system. As a result, we can predict the number of infections as time increases. According to the prediction for the next 30 years, we can conclude that the disease will persist if we just take existing measures. If culling, sterilizing and decreasing the number of outer importing are used together, dairy cattle brucellosis will be well controlled.
Traditionally, security and economics functionalities in IT financial services and protocols (FinTech) have been perceived as separate objectives. We argue that keeping them separate is a bad idea for FinTech "Decentralized Autonomous Organizations" (DAOs). In fact, security and economics are one for DAOs: we show that the failure of a security property, e.g. anonymity, can destroy a DAOs because economic attacks can be tailgated to security attacks. This is illustrated by the examples of "TheDAO" (built on the Ethereum platform) and the DAOed version of a Futures Exchange. We claim that security and economics vulnerabilities, which we named seconomics vulnerabilities, are indeed new "beasts" to be reckoned with.
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