Re: A Suggested Re-Statement of Payswarm Use Case 2.11

RE: "Who owns" the bug?

http://www.wmcompany.com/wmr/Partners/IndexCompilers/index.htm


On Sun, Oct 6, 2013 at 8:20 AM, Joseph Potvin <jpotvin@opman.ca> wrote:

> Bug report:    ...in the $5.3 trillion-a-day (i.e $1.9 quadrillion-a-year)
> foreign exchange market.
>
> http://www.bloomberg.com/news/2013-10-04/swiss-regulator-probes-alleged-foreign-exchange-manipulation.html
>
> "Traders at some of the world’s largest banks sought to manipulate the
> WM/Reuters currency rates in their favor by pushing through trades before
> and during the 60-second windows when the benchmarks are set, five current
> and former dealers with knowledge of the practice said in June. Some
> dealers colluded with counterparts to boost their chances of moving the
> rates, said two of the people, who worked in the industry for a total of
> more than 20 years.
>    Index Providers: The WM/Reuters rates are used by fund managers to
> determine what they pay for currencies and to compute the day-to-day value
> of their holdings, and by index providers such as FTSE Group and MSCI Inc.
> (MSCI) that track stocks and bonds in multiple countries. While the rates
> aren’t followed by most investors, even small movements can affect the
> value of what Morningstar Inc. (MORN) estimates is $3.6 trillion in funds
> including pension and savings accounts that track global indexes.
>    Traders said that because they agree to deal at the 4 p.m. WM/Reuters
> price, they have to push through the bulk of their trades during the window
> when the rate is calculated to minimize potential losses. That leads to a
> surge in trading volume, which can intensify any moves, they said."
>
> See: www.wmcompany.com/wmr/index.htm
> "Rates are fixed using a patented proprietery Methodology."  [spelling
> mistake in original]
> http://www.wmcompany.com/pdfs/WMReutersMethodology.pdf
> https://www.google.com/patents/US8301531
> https://www.google.com/patents/CA2553196C?cl=en
> https://www.google.com/patents/US8429057
> https://www.google.com/patents/US20110295737
>
> Question: "Who owns" the bug? The traders who learned the methodology's
> design characteristics? Or the designer and patent-holder of the flawed
> methodology?
>
> http://www.naturalworlds.org/goliathus/manual/Goliathus_breeding_1.htm
>
> --
> Joseph Potvin
>
>
> On Sun, Sep 15, 2013 at 3:22 PM, Joseph Potvin <jpotvin@opman.ca> wrote:
>
>> Ahead of the "Web Payments and Enabling Price Stability" BoF a day
>> after the upcoming Edgeconf-NYC I would like to share some thoughts
>> about price stability for transactions involving parties located
>> within and amongst monetary jurisdictions.
>>
>> BoF Info: https://payswarm.com/events/2013/nyc-web-payments-bof
>> Open-invitation to BoF, but RSVP.
>>
>> My suggestion is that the current Universal Payment System Use Case
>> 2.11 "Currency Exchange" expressed in the use cases of the Payswarm
>> in-progress reference implementation, should instead be named
>> "Maintain Contract Price Stability". An optional Sub Use Case could
>> then be "Negotiate Exchange Rate". This recommendation applies also to
>> IFEX bullet point Multi-currency Exchange Rate Negotiation.
>>
>> https://payswarm.com/specs/source/use-cases/
>> http://www.ifex-project.org/our-proposals/ifex
>>
>> A detailed explanation (v1.00) has just been posted on my project
>> management site:
>>
>> http://www.projectmanagementhotel.com/projects/free-libre-commerce/wiki/Use_Case_%E2%80%93_Price_Stability
>>
>> http://www.projectmanagementhotel.com/projects/free-libre-commerce?&lang=fr&lang=en
>>
>> Discussion welcome on this list, and/or at the BoF.
>>
>> --
>> Joseph Potvin
>> Operations Manager | Gestionnaire des opérations
>> The Opman Company | La compagnie Opman
>> http://www.projectmanagementhotel.com/projects/opman-portfolio
>> jpotvin@opman.ca
>> Mobile: 819-593-5983
>> LinkedIn (Google short URL): http://goo.gl/Ssp56
>>
>
>
> <http://goo.gl/Ssp56>
>



-- 
Joseph Potvin
Operations Manager | Gestionnaire des opérations
The Opman Company | La compagnie Opman
http://www.projectmanagementhotel.com/projects/opman-portfolio
jpotvin@opman.ca
Mobile: 819-593-5983
LinkedIn (Google short URL): http://goo.gl/Ssp56