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This chapter examines the increased levels of cross-asset price comovement and its relationship with the recent rounds of “extraordinary intervention” from the US Federal Reserve. The results show that, even after controlling for the preceding financial crisis, asset return volatility, investor risk perceptions, and channels of monetary stimulus, historically unrelated financial asset returns experienced abnormal changes in their conditional correlations. The strength of these cross-asset correlations is directly linked to periods of Federal Reserve interventions yet disappear when the interventions were (in fact or were perceived to be) withdrawn. Despite being studied extensively in the academic literature, no traditional intervention channels can explain the changes in cross-comovement. It is proposed that the Fed’s extraordinary stimulus caused investors to use Fed announcements as a common, low-cost information source on which they used to make common portfolio-allocation decisions. The changes in comovement during the intervention period may have reduced investor welfare for those with longer-horizon allocation strategies, those not prepared for the eventual ending of the stimulus, and for underfunded liability-optimizing portfolio managers (e.g., state pension funds).

This paper presents 6 time-series that have negative correlation with KOSPI200 Index and a quantitative trading methodology based on stochastic control chart using these time-series. The proposed quantitative trading framework detects trade (long or short) timing by monitoring whether a time-series touches 4 trigger lines, which play a role as control limits in control chart. In other words, a time-series upwardly touches one of trigger line, then the framework take a short position on KOSPI200 Index Futures, while in case of downward touch, it takes a long position. The 6 time-series are derived from VKOSPI and USD Futures Index that are negatively correlated with KOSPI200 Index, and have a significance that prevents disclosure of trading strategies by processing and transforming the original time-series. Computational experiments using real KOSPI200 futures index for recent 4 years are conducted to show the excellence of the proposed investment strategies against benchmark strategies under quantitative trading framework.

Margin requirements are often viewed as an effective policy tool to prevent the default risk and maintain market stability. For the Korean futures market, this paper examines whether the margin requirements work normally as a tool to prevent default risk and margin changes have impact on futures trading activity. KOSPI200 stock index futures, USD (U.S. Dollar) futures, and 3-year KTB (Korean Treasury Bond) futures are included in the sample for the period from 2010 to 2015. Using the simulation method assuming the worst situation, we find that the possibility of default occurs once for KOSPI200 futures, twice for 3-year KTB futures, and 7 times for USD futures during the sample period. This result suggests that active margin requirement policy is necessary to prepare for financial market turbulence. In addition, we find that the margin changes do not have a significant impact on the futures trading activity, suggesting that decreases in margins are not effective means to improve liquidity in the Korean futures market

This study aims to analyze the dynamic relationship between the Bitcoin market and the conventional asset classes in India

This paper aims to cast light on the dynamic linkages between Bitcoin prices and other conventional asset classes in India by using the wavelet transform frameworks, which can allow us to analyze components of time series without losing the information. To do that, the techniques used with the data set include wavelet-based covariance, correlation, coherence spectrum, continuous power spectrum and Granger causality test.

The findings of the study suggest that interrelationships between Bitcoin and the key financial asset returns are statistically significant at low, medium and high frequencies. This study also finds the existence of the unidirectional connectedness between Bitcoin the other assets in India.

The outcome of the analysis calls for substantial policy implications for investors, portfolio management in India. This research on the existence of the interconnectedness between Bitcoin and other conventional asset classes in a specific country context, India can, therefore, make a significant contribution to the contemporary debate about the speculative nature of the cryptocurrencies. It casts light on whether Bitcoin provides any diversification and risk management benefits for Indian, as well as global investors.

To the best of the author’s knowledge, this is the first paper investigating the interrelatedness between Bitcoin and key conventional asset classes in India. This research makes methodological advancements by using the wavelet coherence transform. The findings provide empirical bases from which to deal with issues regarding hedging purposes and optimal portfolio allocation for an increasing number of investors in the Indian context. Therefore, the main contribution of this study to related literature in this field is significant.

Purpose — The purpose of this chapter is to study the pattern of rogue trading, paying special attention to the aspects of the dishonest behavior of perpetrators.Design/methodology/approach — The chapter discusses selected cases of rogue trading that received the largest coverage by the mass media.Findings — No unique pattern of rogue trading schemes can be identified; however, certain similarities can be brought up based on the discussed cases. There are many aspects of dishonesty involved in fraudulent trading besides illicitness of unauthorized trading as such.Research limitations/implications — The chapter is based largely on a literature review and available data on the instances of rogue trading; probably, there is a vast amount of rogue trading cases undisclosed in order to draw a bigger picture.Originality/value — We apply the framework of white-collar crime process by McKay, Stevens, and Fratzl (2010) in order to clarify whether rogue trading schemes match the development of a typical white-collar crime. Conclusions are built on the analysis of several cases.

The term ‘strategy’ is one of the most frequently used terms in business, and its application in marketing is particularly common. Company strategy, market strategy, marketing strategy, sales strategy, promotion strategy, distribution strategy, low pricing strategy – it would take a long time to list all of them. Although this term is so commonly in use, its definition is not as straightforward and it can be interpreted in different ways. In comparison with tactical decisions, strategy is much more significant for an organisation as it brings long-lasting consequences. It is implemented by higher level managers on a regular basis, and it is based on external, often subjective information, so decisions – especially at the time they are made – are difficult to evaluate.

Taking into consideration the fact that strategy refers to a long-term rather than a short-term period, strategic decisions serve as the basis for undertaking operational activities. However, marketing refers to the market and the competition. It is possible to claim that marketing strategy is trying to find an answer to the question to which path an organisation should follow in order to achieve its goals and objectives. If, for example, a company has a goal to generate a profit of PLN 1 million by selling 100,000 pieces of a product, the market strategy should answer at least the following two questions:

1. Who will be our target group, for example, who will purchase the 100,000 pieces of the product?

2. Why is it us from whom a potential buyer should purchase the product?

Who will be our target group, for example, who will purchase the 100,000 pieces of the product?

Why is it us from whom a potential buyer should purchase the product?

The target market will be defined if a reply to the first question is provided. The second question identifies the foundations of competitive advantage. These two issues, that is, target market and competitive advantage are the strategic marketing issues. You cannot change your target group unexpectedly while competitive advantage is the basis for changing decisions regarding prices, promotions and sales.

This chapter describes the measures of marketing activities which refer to strategic aspects and testify a company’s market position – the measures of the performance of target groups and competitive advantage. Readers’ attention should be also focused on the indices that are less popular in Poland and, therefore, may be underestimated. It seems that some of them, for example, the index of marketing resources allocation and the marketing risk index, provide a lot of valuable information and, at the same time, make it possible to show the value of marketing investments. Their wider use in the near future is only a matter of time.

It is generally recognised that companies spend approximately 50% of their marketing budget on promotional activities. Advertising belongs to the most visible areas of a company’s activity. Therefore, it should not be surprising that the average recipient associates marketing with advertising, competitions and leaflets about new promotions delivered to houses or offices. Advertising, especially Internet advertising, is one of the most effective forms of marketing and one of the fastest developing areas of business. New channels of communication are emerging all the time – the Internet, digital television, mobile telephony; accompanied by new forms, such as the so-called ambient media. Advertising benefits from the achievements of many fields of science, that is, psychology, sociology, statistics, medicine and economics. At the same time, it combines science and the arts – it requires both knowledge and intuition. Contemporary advertising has different forms and areas of activity; yet it is always closely linked with the operations of a company – it is a form of marketing communication.

The indices of marketing communication presented in this chapter are generally known and used not only by advertising agencies but also by the marketing departments of many organisations. Brand awareness, advertising scope and frequency, the penetration index or the response rate belong to the most widely used indices; others, like the conversion rate or the affinity index, will get increasingly more significant along with the process of professionalisation of the environment of marketing specialists in Poland and with increased pressure on measuring marketing activities. Marketing indices are used for not only planning activities, but also their evaluation; some of them, such as telemarketing, mailing and coupons, provide an extensive array of possibilities of performance evaluation.

It seems that the Internet boom, which started at the end of the 1990s and finished with the spectacular collapse of the so-called dotcoms, is probably over. We are currently enjoying a period of fast and stable growth. This is manifested by the growing number of both Internet users and companies which – to an ever-increasing extent – use the Internet as a form of communication (both internal and external), promotion, sales etc. Expenditures on Internet advertising are growing continuously and now constitute more than 25% of all advertising expenditure. A natural consequence of this development is the need for the standardisation and organisation of the world of the Internet. These activities will result in a greater awareness of the benefits which this medium provides, increasing the possibilities of its use, and – most importantly – the opportunity to evaluate the return on investments made on the Internet. Nowadays, it is clear that many companies are striving to increase the quality of their activities on the Internet or to improve the effectiveness of such activities. As a consequence, the number of companies that look for indices which would enable the making of more precise and effective decisions in the scope of online operations is growing.

This chapter is dedicated to the phenomenon of the increasing role of the Internet in business, including the scale of its use by Polish and international companies. We present the most commonly used measures of marketing activities on the Internet and in social media. This group includes the indices which make it possible to determine whether a company actually needs a website. Other measures allow for the improvement in the effectiveness of the activity on the Internet, whereas others specify the costs of activities on the Internet and often serve as the basis for settlements between a company and advertising agencies or companies specialising in website design. It is worth emphasising that the Paid, Earned, Shared, Owned (PESO) model, worked out by Don Bartholomew,¹ is the basis for creation and description of indices concerning social media. This model has gained certain popularity in the social media industry. It does not, however, specify how individual indices should be named and calculated. It maps already existing indices and adapts them to specific levels of marketing communication measurement. All the measures indicated by the author of the model have been grouped into five major areas: exposure, engagement, brand awareness, action and recommendations. This model– similarly to all models of performance measurement – inspired by the sales funnel concept, adjusts certain standard indices and proposals of measurements for specific levels. Additionally, the measures are divided into four types, depending on who the owner of the content is: Paid (P) – refers to all forms of paid content; Owned (O) – all websites and web properties controlled by a company or brand; Earned (E) – the contents about a given brand created spontaneously by Internet users; and Shared (S) – the contents shared by Internet users.

The objective of this chapter is to identify the key characteristics of Global Services businesses that will thrive and achieve success in the future. These factors are integrated into three main pillars, which we refer to as the Triple-Win. The first and most obvious pillar is technology as a tool. The second pillar is the design and sustainability of the business model, without which the previous factor would be merely a cost and not an investment. And last but not the least, there is the purpose which gives meaning to the proposal, focusing on the human being and their environment. The DIDPAGA business model sits at the intersection of these three elements.