Stress events in the Hungarian stock market

Central clearing and the role of central counterparties (CCP) has gained on importance in the financial sector, since counterparty risk of the trading is to be managed by them. The regulation has turned towards them lately, by defining several processes, how CCPs should measure and manage their risk. Stress situation is an important term of the regulation, however it is not specified clearly, how stress should be identified. This paper provides a possible definition of stress event based on the existing risk management methodology: the usage of risk measure oversteps, and investigates the potential stress periods of the last years on the Hungarian stock market. According to the results the definition needs further calibration based on the magnitude of the cross-sectional data. The paper examines furthermore whether stress is to be predicted from market liquidity. The connection of liquidity and market turmoil proved to be contrary to the expectations; liquidity shortage was rather a consequence, than a forecaster phenomenon in the tested period.

Conceptualising the Events of 1956: The Elusive Quest for a Conveniently Simple Definition

The objective of the following article is to give the reader a perspective on the events of 1956 in Hungary – known commonly as the 1956 Hungarian Uprising or Revolution (or as it is sometimes called in Hungary: the 1956 Revolution and Freedom Fight) – from the point of view of counterinsurgency theory. The author intends to show that the current theory has many problems and shortcomings when it comes to the analysis of the events of 1956 because of the unique set of circumstances which prevailed at that time.