The EU ban on uncovered sovereign credit default swaps: assessing impacts on liquidity, volatility and price discovery

This article addresses the effects of the prohibition against naked CDS buying implemented by the European Union in November 2012. Three aspects of market quality are analyzed: liquidity, volatility, and price informativeness. Overall, our results suggest that the ban produced negative effects on liquidity and price informativeness. First, we find that in territories within the scope of the EU regulation, the bid–ask spreads on sovereign CDS contracts rose after the ban, but fell for countries outside its bounds. Open interest declined for both groups of CDS reference entities in our sample, but significantly more in the constraint group. Price delay increased more prominently for countries affected by the ban, whereas price precision decreased for these countries while increasing for CDSs written on other sovereign reference entities. Most notably, our findings indicate that hese negative effects were more pronounced amid reference entities exhibiting lower credit risk. With respect to volatility, the evidence suggests that the ban was successful in stabilizing the CDS market in that volatility decreased, particularly for contracts written on riskier CDS entities.

Avaliação de impactos dos processos RVCC no Centro Novas Oportunidades da Fundação Alentejo: o período de 2000-2005

Este projeto de investigação teve como objetivo geral avaliar os impactos do processo de Reconhecimento Validação e Certificação de Competências (RVCC) de nível básico, dos adultos que, no Centro de Novas Oportunidades da Fundação Alentejo, no período de 2000-2005, nele participaram e viram certificadas as suas competências. Sendo uma investigação de cariz descritivo, recorre, em termos metodológicos, a uma abordagem quantitativa, operacionalizada pela aplicação de um inquérito por questionário a uma amostra de 147 adultos. A análise dos resultados permitiu-nos concluir que os impactos do processo de RVCC verificam-se, maioritariamente na dimensão pessoal, enquanto, nas dimensões profissional, social e académica, não são tão visíveis. No entanto, são as mulheres que predominam, logo, valorizam mais o processo. Importa, também, verificar que o processo contribui para o aumento da valorização pessoal e do nível de escolaridade dos adultos ao familiarizar-se com o ativar das atividades de Aprendizagem ao Longo da Vida; ABSTRACT:The overall objective of this research project was to assess the impact of the adult basic RVCC (Competence Recognition, Validation and Certification) process in the people that took part in it and whose competences were certified at the Centro de Novas Oportunidades da Fundação Alentejo between 2000 and 2005. Being a descriptive research its methodology implied the application of a questionnaire to a sample of 147 people and a quantitative approach. The analysis of the results allowed us to conclude that the impact of the RVCC process occurred mostly on a personal level; however it is not so visible on the professional, social and academic levels. However, women are in a greater number and, therefore, they value the process more. It is also important to verify that the process contributes to the raise of the sense of self-worth and of the schooling level of adults as they become familiar with the Life-long Learning activities.