Posts tagged derivatives

The market is betting on climate change

VOX, CEPR, climate, economics, markets, IPCC, CME, futures, derivatives, 2019

Understanding beliefs about climate change is important, but most of the measures used in the literature are unreliable. Instead, this column uses prices of financial products whose payouts are tied to future weather outcomes in the US. These market expectations correlate well with climate model outputs between 2002 and 2018 and observed weather data across eight US cities, and show significant warming trends. When money is at stake, agents are accurately anticipating warming trends in line with the scientific consensus of climate models.

via https://voxeu.org/article/market-betting-climate-change

Digital Provenance and the Artwork as Derivative

art, art-theory, McKenzie-Wark, finance, simulation, derivatives, attention, provenance, production

I think what is most interesting about the relation between art and information is the reciprocal relation between art as rarity and information as ubiquity. It turns out that ubiquity can be a kind of distributed provenance, of which the artwork itself is the derivative. The artwork is then ideally a portfolio of different kinds of simulated value, the mixture of which can be a long-term hedge against the risks of various kinds of simulated value falling—such as the revealing of the name of a hidden artist, or the decline of the intellectual discourse on which the work depended, or the artist falling into banality and overproduction. Since art became a special kind of financial instrument rather than a special kind of manufactured article, it no longer needs to have a special means for its making, or even perhaps special makers. Indeed, curators now rival artists for influence the way DJs rival musicians. Both are a kind of portfolio manager of the qualitative. The next step after the dematerialization of the artwork may be the dematerialization of the art worker, whose place could be taken by new kinds of algorithmic functions. These would still have to produce the range of simulations that might anchor the artwork as a derivative of their various kinds of sign value.

via http://www.e-flux.com/journal/77/77374/digital-provenance-and-the-artwork-as-derivative/

Antitrust: Commission confirms unannounced inspections in oil and biofuels sectors

EU, EC, antitrust, price fixing, collusion, derivatives

The European Commission can confirm that, on 14 May 2013, Commission officials carried out unannounced inspections at the premises of several companies active in and providing services to the crude oil, refined oil products and biofuels sectors. These inspections took place in two EU Member States. At the Commission’s request, inspections were also carried out on its behalf by the EFTA Surveillance Authority in one European Economic Area (EEA) Member State. The Commission has concerns that the companies may have colluded in reporting distorted prices to a Price Reporting Agency to manipulate the published prices for a number of oil and biofuel products. Furthermore, the Commission has concerns that the companies may have prevented others from participating in the price assessment process, with a view to distorting published prices.

http://europa.eu/rapid/press-release_MEMO–13–435_en.htm