Violence is a central concept for describing social relationships among humans, a concept loaded with ethical and political significance. Social violence refers to any type of violence committed by individuals or the community that has a social impact. Exposure to violence can be direct (for example, being the victim of a violent act) or indirect (for example, hearing about violence or witnessing violence involving others). Can violence be used as a way to solve problems? The answer to that question may be an indignant “No,” but, in fact, almost everyone feels physical coercion is a necessary tool to solve some problems under certain circumstances. But what problems, and under which circumstance? The most plausible justification of violence is when it is perpetrated in return of other violence. If a person punches you in the face and seems intentions to keep doing so, it may seem justified to try and respond to the physical violence.
s of currency-tenor in year 2016.
The FCA are aiming to reform the LIBOR by phasing out LIBOR after 2021 – meaning Banks no longer need to conform to the submission of data by regulators. Following the financial crisis, banks have shifted away from unsecured short-term borrowing, preferring repos, bonds and other forms of financing (Paul Cantwell, 2018). So these factors coupled with LIBOR’s unsustainable structure in the money markets, and Banks willingness to maintain investor and consumer trust, will result more banks voluntarily retracting from LIBOR Submissions in the future. Although, I believe this process will be a success, it will prove to be a very difficult transition to completely phase out a widely used rate. There are still trillions of pounds worth of financial instruments that are pegged to LIBOR, and in some cases, still have maturities after 2021. LIBOR is still a floating rate for a huge sum of contracts, regardless of alternative risk-free rates.
Alternative risk-free rates have been proposed and soon to be implemented by regulators all around the world. Over time, regulators hope that more derivatives and loans will be backed by the rate, which will decrease the importance of Libor (Reuters, 2018). Various countries have adopted their own risk-free rates such as: SONIA (UK), SOFR (US) and more.
These rates are set in overnight markets. The LIBOR had maturity ranging from a variety of different periods, such as the three-month LIBOR. These new rates are determined once, at the end of each period. So, Unlike LIBOR, banks are unable to know how much interest rate is to be paid until the end of that overnight period, implying the disparities in payment between both these rates and LIBOR rates respectively. This model could prove advantageous in preventing collusion between banks, but these new rates adapting to market conditions and everyday life can have major implications. These complications include indexing and hedging these risk-free rates to LIBOR rates in various currencies, to link products to the new rate. What risk management instruments are needed to retain liquidity? The transition will change firms’ market risk profiles, requiring changes to risk models, valuation tools, product design and hedging strategies (Paul Cantwell, 2018). Such complications to a new model imposes further costs and uncertainty in adopting these rates appropriately. Moreover, these issues are dragged across to company stakeholders. For example, Members of staff are subject to a change in operational procedures, as they will be given training on how to work with new accountancy and tax processes, and how to endure systematic changes. These factors cause major concern.
Unlike the SONIA, which is used in the UK to reference the OIS, other alternative rates such as the US SOFR are secured, rather than unsecured. These secured contracts eliminate credit risk, which provides lower interest rates than unsecured rates. This gives a variety of options, such as cross-diversifying financial and re
