Women in Engineering Essay Example | Topics and Well Written Essays - 2000 words

Women in Engineering - Essay Example The first six clippings are analyzed in detail whereas the rest of them are summed up into an aggregate account in the end. The analysis throws light on the overall perspective which is affecting the economy of the US nation as a whole. FIRST CLIPPING â€Å"Women who leave engineering jobs after obtaining the necessary degree are significantly more likely to leave the field because of an uncomfortable work climate than because of family reasons, according to a study being undertaken at the University of Wisconsin-Milwaukee (UWM).† (Science Daily, 2008) The above mentioned news clipping revolves around the most current problem that is being faced by women engineers nowadays. The overall ethical structure of the society and more importantly that of a workplace has deteriorated so very much that day by day it is becoming increasingly difficult for the fairer sex to take advantage of it. The above mentioned current problem is very moral negating. ... The above research was the outcome of a latest study conducted in Milwaukee using about half a million grant by the National Science Foundation. The study was based on an online survey. Around 3700 women who had done their engineering degree from over 230 countries participated in the survey. Among the four type of respondents women who never entered their practical engineering field constituted a considerable part. THIRD CLIPPING â€Å"As the need for engineering professionals grows, educators and industry leaders are increasingly concerned with how to attract women to a traditional male career. A new University of Missouri study found the impact of the engineering curriculum and obstacles, including self-efficacy and feelings of inclusion, can impede women’s success in the predominantly male discipline of engineering.† (Science Daily, 2008) Engineering is a predominantly male discipline. The structural difficulties and obstacles encountered by students pursuing this c areer needs to be taken into account when realizing the reasons behind its being predominantly male. Engineering is mainly a tough field. The excessive hours spent in it along with the harsh conditions involved in the practical environment of engineering are not apart from the difficulties that are faced by engineering students during their studies. Rigid mathematical calculations involving calculus are just a few of the obstacles that the engineering curriculum involves. This scenario is making it troublesome for industrialists because lesser and lesser women are entering the field of engineering day by day. The need of the day is that steps should be taken that would persuade women and would convince them

Article Review (Shopping for Privacy on the Internet) Coursework

Article Review (Shopping for Privacy on the Internet) - Coursework Example He emphasized the fact that consumers would not be handed privacy on a silver platter but rather they must become vigilant in their demand for Web site operators to adhere to their demand for privacy. Professors Pitt and Watson (2007) respond to Nehf’s (2007) article by utilizing an ‘ecosystem approach’ to explore the various elements of privacy. Not only do they examine relations amongst the three main participants in the privacy interactions, namely, ‘citizen/consumer/investor, government and corporation’ but also the reasons for the lack of success of the market system to protect the privacy of all stakeholders. Nehf (2007) commences his article by emphasizing that the brunt of the responsibility of protecting consumer privacy is in the hands of the individual. The individual is the one who has to attempt to reduce the risks involved in submitting personal information to any public site. Particularly, on the World Wide Web the customer’s personal information may be used by unscrupulous Web site organizers. Although ‘federal (and a few state) laws’ limit the utilization of some personal information, these restrictions are full of exceptions and many of the internet transactions are not even ‘subject to state or federal privacy laws’(Nehf 2007, p.351- 352). Interestingly, Nehf (2007) highlighted the superficial form of concern that online businesses appear to have in protecting the privacy of their consumers. These businesses profess to collect a minute amount of data on the customer which will be kept safe from predators vandalizing this data. Consistent with this apparent concern for the protection of consumers’ privacy by online businesses, consumers also are genuinely concerned with ‘identity theft’ and the possible humiliation of having their private affairs published for all and sundry to peruse. Thus, consumers attempt to protect themselves by submitting as little information as possible to these

The Effect of Non-Financial Compensation Essay Example for Free

The Effect of Non-Financial Compensation Essay The Effect of Financial and Non Financial Compensation to the Employee Performance Arik Prasetya†  and Masanori Kato Graduate School of Asia Pacific Studies, Ritsumeikan Asia Pacific University Beppu-shi, Oita-ken, Japan Abstract This study aims (1) to examine the employee responses in terms of their performance to an implementation of the compensation policy that includes both financial and non financial compensations, (2) to analyze the influence of both financial and nonfinancial compensation collectively and individually. This research was conducted at PT. Telkom Malang Regional Office, by a proportional random sampling technique with the sample size of 57 employees. The results of the descriptive statistical analysis of financial and nonfinancial compensation showed that the compensation policy of PT. Telkom Malang Regional Office is in line with expectations of employees. Based on the results of multiple regression analysis, there are significant influences of financial and nonfinancial compensation to the employee performance. However it was noted that promotion did not influence the employee performance in this company. Keywords: financial compensation, salary, incentive, non financial compensation, promotion, employee performance INTRODUCTION Job performance is influenced by many factors. According to Kreitner and Kinicki (2007), performance management is â€Å"continuous cycle of improving job performance with goal setting, feedback and coaching, and rewards and positive reinforcement†. In this study the focus was given to compensation scheme. An investigation was conducted at PT. Telkom Malang Regional Office to see how such factors of compensation scheme affect job performance of the employees. The question that prompted the current investigation was What degrees at which the salary, incentives, benefits, promotion, self-development, and work environment collectively or individually have influence on employee performance? . Compensation Compensation is one of the physical needs that influence motivation which in turn will affect the employee performance. Providing appropriate compensation within the meaning of fair and adequate to meet the requirements is one of the personnel department functions that are difficult to implement. Compensation includes the financial returns to the services renered by employees as part of employment relationships. Compensation is a form of rewards that flow to employees arising from their employment (Dessler, 1995). Compensation has a big influence in the recruitment of employees, motivation, productivity and employee turnover (Bernardin Russell, 1993). The level and magnitude of compensation should be of concern because the level of compensation will determine the lifestyle, self esteem, and the value of the company. Cascio (1991) describes that the principles that must be considered in granting effective compensation are: a. The principle of fairness, taking into account the ratio between the highest and lowest salaries, cost of living, and so forth. b. The principle of justice, where there should be a good element of justice in connection with the element of working time and job performance.

Essays --

Ernest Hemingway uses the various events in Nick Adams life to expose the reader to the themes of youth, loss, and death throughout his novel In Our Time. Youth very often plays its part in war, and since In Our Time relates itself very frequently to war throughout; it is not a surprise that the theme of youthful innocence arises in many of the stories. In â€Å"Indian Camp† the youthful innocence is shown in the last sentence of the story: â€Å"In the early morning on the lake sitting in the stern of the boat with his father rowing, he felt quite sure that he would never die.† (19) When this sentence and the conversation Nick and his father have before they get on the boat are combined in thought it shows that because of Nicks age at the time that he does not yet understand the concept of death. Throughout the book youth has a complicated relationship with aging. This can be seen in â€Å"Three-Day Blow† when Nick and Bill are drinking, acting childish and just having fun. They talk about each others’ fathers and about missed opportunities even though they cannot really understand what they are...

Administrative Law Philippines

1. Administrative Findings Given Great Weight in Court Sebastian F. Oasay, Jr. vs. Palacio del Gobernador Condominium Corporation and Omar T. Cruz,  [G. R. No. 194306, February 6, 2012. ] LINK: http://lexoterica. wordpress. com/2012/03/05/february-2012-philippine-supreme-court-decisions-on-labor-law-and-procedure/ Appeal; factual finding of NLRC. Findings of fact of administrative agencies and quasi-judicial bodies, which have acquired expertise because their jurisdiction is confined to specific matters, are generally accorded not only respect but finality when affirmed by the Court of Appeals.Factual findings of quasi-judicial bodies like the NLRC, if supported by substantial evidence, are accorded respect and even finality by the Supreme Court, more so when they coincide with those of the Labor Arbiter. Such factual findings are given more weight when the same are affirmed by the Court of Appeals. In the present case, the Supreme Court found no reason to depart from these princip les since the Labor Arbiter found that there was substantial evidence to conclude that Oasay had breached the trust and confidence of Palacio Del Gobernador Condominium Corporation, which finding the NLRC had likewise upheld.Gatus vs. SSS [G. R. No. 174725, January 26, 2011] LINK: http://sc. judiciary. gov. ph/jurisprudence/2011/january2011/174725. htm The sole issue to be determined is whether the Court of Appeals committed grave abuse of discretion in affirming the finding of the ECC that petitioner’s ailment is not compensable under Presidential Decree No. 626, as amended. xxx The burden of proof is thus on petitioner to show that any of the above conditions have been met in his case. The required proof is further discussed in  Ortega v. Social Security Commission[17]:The requisite quantum of proof in cases filed before administrative or quasi-judicial bodies is neither proof beyond reasonable doubt nor preponderance of evidence. In this type of cases, a fact may be deem ed established if it is supported by substantial evidence, or that amount of relevant evidence which a reasonable mind might accept as adequate to justify a conclusion. In this case, substantial evidence abounds. xxx The questioned Decision deemed as established fact that petitioner is a cigarette smoker; but petitioner vehemently denies this, saying there is no competent evidence to prove he had that habit.What petitioner would like this Court to do is to pass upon a question of fact, which the ECC, the SSS, and the Court of Appeals have used to deny his claim for compensation. This is not allowed under Section 1 of Rule 45, which states that â€Å"[t]he petition shall raise  only questions of law  which must be distinctly set forth. â€Å"[21]  Hence, questions of fact may not be taken up in a petition for review on  certiorari  such as this case now before us. As we have held previously:A question of fact exists when the doubt centers on the truth or falsity of the al leged facts while a question of law exists if the doubt centers on what the law is on a certain set of facts. There is a question of fact if the issue requires a review of the evidence presented or requires the re-evaluation of the credibility of witnesses. However, if the issue raised is capable of being resolved without need of reviewing the probative value of the evidence, the question is one of law. xxxThe matter of petitioner’s cigarette smoking, established by two competent government agencies and the appellate court, is thus a matter that cannot be questioned before us via petition for review. There is no doubt that petitioner deserves sympathy because even the benefits already given to him were questioned after the SSS found that he was a chronic cigarette smoker. For humanitarian reasons, as he pursued his claim all the way to the Court as an indigent litigant, and due to his advancing age, we would like to clarify that what had already been given him should no longe r be taken away from him.But he is not entitled to further compensation for his condition. We have once more put great weight to the factual findings of administrative agencies and quasi-judicial bodies, namely the SSS and the ECC, as they have acquired expertise in all matters relating to employee compensation and disability benefits. As we have held in  Ortega v. Social Security Commission[25]: It is settled that the Court is not a trier of facts and accords great weight to the factual findings of lower courts or agencies whose function is to resolve factual matters.It is not for the Court to weigh evidence all over again. Moreover, findings of fact of administrative agencies and quasi-judicial bodies, which have acquired expertise because their jurisdiction is confined to specific matters, are generally accorded not only respect but finality when affirmed by the Court of Appeals. 2. Decisions not stating facts and the law Saballa, et. al vs. NLRC [G. R. Nos. 102472-84. August 2 2, 1996] The Issue The petitioners raised the lone issue of whether or not: RESPONDENT NLRC GRAVELY ABUSED ITS DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION WHEN, DESPITE THE OVERWHELMING EVIDENCE TO THE CONTRARY, IT DECLARED THE RETRENCHMENT OF PETITIONERS VALID AND LEGAL. † Petitioners argue that while the  NLRC  claimed to disagree with the factual findings/conclusions of the arbiter, it did not state what particular findings and conclusions it could not go along with; and while the Decision purports to apply the requisites for a valid retrenchment, the public respondent did not specify what those were.Further, citing  Lopez Sugar Corporation vs. Federation of Free Workers,[15]  petitioners claim that private respondent failed to show by convincing proof the concurrence of the requirements for valid retrenchment, and among other things, failed to show that the losses sought to be prevented were substantial and reasonably imminent. On the contrary, according to petitioners, the evidence on record clearly shows that the enforcement of the retrenchment program was attended by bad faith. The Court’s Ruling NLRC  Decision ArbitraryThe petition is meritorious. This Court has previously held that judges and arbiters should draw up their decisions and resolutions with due care, and make certain that they truly and accurately reflect their conclusions and their final dispositions. [16]  A decision should faithfully comply with Section 14, Article  VIII  of the Constitution which provides that no decision shall be rendered by any court without expressing therein clearly and distinctly the facts of the case and the law on which it is based.If such decision had to be completely overturned or set aside, upon the filing of a motion for reconsideration, in a subsequent action via a resolution or modified decision, such resolution or decision should likewise state the factual and legal foundation relied upon. The reason for this is obv ious:  Ã‚  aside from being required by the Constitution, the court should be able to justify such a sudden change of course; it must be able to convincingly explain the taking back of its solemn conclusions and pronouncements in the earlier decision. 17]  The same thing goes for the findings of fact made by the  NLRC, as it is a settled rule that such findings are entitled to great respect and even finality when supported by substantial evidence; otherwise, they shall be struck down for being whimsical and capricious and arrived at with grave abuse of discretion. 18]  It is a requirement of due process and fair play that the parties to a litigation be informed of how it was decided, with an explanation of the factual and legal reasons that led to the conclusions of the court. A decision that does not clearly and distinctly state the facts and the law on which it is based leaves the parties in the dark as to how it was reached and is especially prejudicial to the losing part y, who is unable to pinpoint the possible errors of the court for review by a higher tribunal. 19] Based on the foregoing considerations, we find the assailed Decision arbitrary in its naked assertion that:  Ã‚  Ã¢â‚¬Å"(A)pplying the requisites (for valid retrenchment) to the instant case, we lent credence to respondent’s evidence supporting the fact that it was suffering financial reverses (pp. 118-136). Hence, complainant’s separation is valid, due to retrenchment. † The Decision does not indicate the  specific  bases for such crucial holding.While it  enumerated  some of the factors that supposedly weighed in favor of private respondent’s position,  i. e. , theNEA’s foreclosure letter; the  NPC’s disconnection letter; private respondent’s Income Statement; the fact that the employees’ union agreed to the â€Å"forced leave† policy instead of the drastic measure of retrenchment; and the impossibility of re instating the petitioners â€Å"considering the financial losses for 1988 alone not to mention the losses incurred for 1989 and wage increases imposed by the government (pp. 13-141,  rollo),† the public respondent nevertheless did not bother to explain how it came to the conclusion that private respondent was experiencing business reversals, nor did it specify which particular data and document it based such conclusion upon. This can only be because the private respondent failed to show convincingly by substantial evidence the fact of its failing financial health, and that such retrenchment was justified.Our observation is bolstered further by the Comment of the public respondent where it tried to rationalize its ruling by saying: â€Å"It is to be noted that private respondent x x x is a big and reputable company and for them to admit that it is in distress is a bitter pill to swallow, yet they must accept the sad situation that they are in. This representation believes i n the veracity of respondent’s x x x position. † Even resorting to the records does not help.The termination letter dated October 18, 1988[20]  stated that the reason for the retrenchment was â€Å"to avoid Coop financial losses. † However, the imminent loss sought to be forestalled by the retrenchment of petitioners was not actually indicated or specified. Page 118 of the records is the demand letter of  NEA  for payment of private respondent’s arrearages as of June 30, 1988. It warned that the account in the amount of approximately P8. 5 million should be settled within 30 days otherwise  NEA  will exercise its right to foreclose.But the records do not show that any property of private respondent was ever foreclosed nor that the savings from the salaries of the retrenched petitioners were to be used to pay for the arrearages; neither was it shown that private respondent did not have the resources to pay said obligation. Page 119 of the records is a Notice of Disconnection stating that the private respondent was required to pay twenty five percent of its outstanding bill to the  NEA  or face power disconnection on July 29, 1988.But private respondent did not show that such disconnection was effected then nor that the allotment for petitioners’ salaries was to be used to pay for this bill. The private respondent in its motion for reconsideration asked that the labor arbiter take judicial notice that  NPC  eventually disconnected its power supply on April 10, 1989, but this only means that the private respondent must have been able to pay up and settle its account on or about July 29, 1988, as it was not disconnected until April 10, 1989.By October 18, 1988, the losses, if any, sought to be proven by these documents would already have been sustained, so there could not have been any imminent loss which was to have been forestalled by the retrenchment of petitioners effected at that time. In other words, these abovementioned documents did not show any expected loss which made the retrenchment reasonably necessary, nor that such retrenchment was likely to prevent the expected loss.We do not deny that the private respondent would suffer losses as a result of a foreclosure or power disconnection, however, it failed to show how these threatened events eventually affected the cooperative’s financial health, if they ever happened at all. Besides, they are irrelevant because the imminent loss was supposed to come after October 18, 1988, months after these incidents. Moreover, pages 120-136 of the records (referred to in the assailed Decision) are the financial statements of the private respondent which are  unaudited  by independent external auditors and are without  Ã‚  Ã‚  accompanying explanations.This Court has previously held that financial statements audited by independent external auditors constitute the normal method of proof of the profit and loss performance of a company. [21]  And since private respondent insists that its  critical financial condition  was the central and pivotal reason for its retrenchment and forced leave programs, we therefore fail to see why it should neglect or refuse to submit such audited financial statements. Apart from that, we noted that the said unaudited statements were filled with erasures; some entries were even handwritten, and different typewriters were used.There is therefore serious ground to doubt the correctness and accuracy of said statements. Additionally, these statements require further explanations before the accounting procedures of private respondent can be understood. Thus, the Court is wary of according them any probative value, especially since respondent Commission seems to have treated them in a similar fashion by not discussing them in its Decision. In brief, we hold that public respondent gravely abused its discretion in rendering the challenged Decision without adequately explaining its factu al and legal

Creative Writing Prison Break Essay - 1547 Words

Prologue Something is odd. I overheard my parents discussing some rapid change in the government. News like this frightens me. It scares me because it is reality. It is real. Not knowing much about politics, I immediately ask them what is going on. There was a lump in my throat. But they quickly switch the topic to avoid the question, as if I didn’t ask. I know they heard me. It makes me angry. I ask again, this time with a broad, stern voice. They both give each other a worried look. â€Å"Alexis,† Mother said, â€Å"I know we ignore you. It’s for the best. But, I think 16 is old enough to know.† â€Å"What is it?† I reply, â€Å"Our country is earning a new leader, and he will put us under a communist rule.† she says with a stutter. At first I†¦show more content†¦Everyone thinks he is a genius. Although I keep these thoughts to myself, I hope that there is someone out there who thinks similar to me. As I dress for school, I listen to the daily news about President Thomas. What he thinks of is insane, and the country is so naive for following him. As I glance at my watch, I realize that i am going to be late for school. My journey to school was full of many unpleasant thoughts. As I close my locker, my best friend awaits me. Ashley. We are making our way towards our classroom when Principal Sullivan strictly makes everyone form a straight line. Everyone has a puzzled look on their face. What is going on? And I know that is what everyone else is thinking. Chapter 2: Tested on Our Beliefs One by one, security guards escort us into a building. One at a time. The line consists of every student in the whole High School. Luckily, I am towards the front. About half an hour passes, then I am up. They take me to a room that I didn’t even know existed. It’s a large warehouse towards the end of the schools property. There is a table in the center with two chairs. Principal Sullivan fills one of them and I suppose the other is for me. He sternly tells me to sit, so I am guessing what ever this is, it serious. Mr. Sullivan has an unpleasant look on his face. It seems that something is up. But what could it be? He shoves a paper in front of me. It says, â€Å"Many of you have heard of the new leader. It isShow MoreRelatedMe as a Writer 940 Words   |  4 Pagessomething meant. Back in high school, my teachers always wanted me to explain my writing in such depth that a kindergartener would understand why Romeo and Juliet is a tragedy. Trying to explain my writing was always very tiring. I often would get bored trying to explain and just stop writing and do something else for a while. Most of the time in high school I didn’t like writing. Mainly because I thought my writing wasn’t good enough to see the light of day. I never like peer editing. I was alwaysRead MoreThe Yellow Wallpaper, By Charlotte Perkins Gilman1523 Words   |  7 PagesYellow Wallpaper†, and her behavior/actions towards these conflicts indirectly state the themes of gender role, freedom, madness, and women’s health throughout the story. â€Å"The Yellow Wallpaper† starts off with the narrator, an unnamed woman, who is writing in her journal. Speaking in first person, the narrator of the story has recently given birth to her first child and has been diagnosed by her husband, a physician, as suffering from what seems to be post-partum depression or a â€Å"temporary nervous depression†Read MoreCinder Book Report946 Words   |  4 Pagesknows that Cinder is a Lunar shell she tries to brainwash Cinder into shooting herself. Cinder breaks from the trance and runs away but falls on a flight of stairs and broke her foot off. Queen Levana exposes Cinder as a cyborg and a Lunar fugitive, so Levana wants to kill Cinder. Trying to preserve peace and show mercy to Cinder, Prince Kai chose to imprison Cinder on Earth. Dr. Erland visits Cinder in prison and tells her that the fate of the world is in her hands and helps her escape. The main conflictRead MorePrison Break : Cognitive Dissonance And The Power Elite1902 Words   |  8 Pagesthe concepts of cognitive dissonance and the power elite is called Prison Break. This show tells a storyline of a man named Michael Scofield who has to save his brother Lincoln, who was put on Death Row for a crime he did not commit. Lincoln was framed for the murder of the vice president by a power group of people called â€Å"The Company†. Michael is a genius who has an architect degree and sets up a plan to break Lincoln out of prison and prove his innocence by taking down The Company. The way theyRead MoreBiography Of Hairspray At Toby s Dinner Theatre1329 Words   |  6 Pagesas she worked in the white family’s home. She gave attention to the white girl before her own daughter. I really enjoyed the talk back with the director because she answered a lot of questions I had while watching the play. She also discussed the creative process for the Bluest Eye and the outside sources she needed to get information on, which was interesting because it shows how the Bluest Eye was collectively formed. The play can serve as a vehicle for change because it explores the struggles thatRead MoreLow Income And Lower Class Families Struggle With Providing Their Children1660 Words   |  7 Pagesdays, I write novels, short stories, and poems. I visit schools and teach creative writing to Indian kids† (Alexie 161). Even though Sherman had the odds stacked against him, he came out a teacher and a writer. Malcom X did not share the same story as Sherman Alexie, but he still faced the hardships of the lower class. Malcolm X states in Learning to Read, that while on the streets he was an articulate hustler but while in prison while trying to write the English language he couldn’t even function (MalcolmRead MoreThe Yellow Wallpaper, By Charlotte Perkins Gilman1038 Words   |  5 Pagesnarrative, which has broad implications for women. When the narrator recognizes that there is more than one trapped, creeping woman, Gilman indicates that the meaning of her story extends beyond an isolated, individual situation. Gilman’s main purpose in writing The Yellow Wallpaper is to doom not only a specific medical treatment but also the misogynistic principles and resulting sexual politics that make such a treatment possible. Those things lead to the major themes of the story: freedom, confinementRead MoreSympathy for Characters in The Yellow Wallpaper and The Nightingale and the Rose1118 Words   |  5 Pagesis implied, from post-natal-depression. As she recuperates with her neurasthenia, she is not allowed to do anything but rest, she has a schedule prescription for each hour in the day and is especially forbidden from the creative work of writing. Moreover, the narrator is confined to an unpleasant and threatening room, one she strongly dislikes. She states I should hate it myself if I had to live in this room long. The narrator grows progressively insane, up to theRead MorePaul Simons the Sound of Silence1161 Words   |  5 PagesPaul Simons The Sound of Silence A poem, like all other works of art, may appear as an inter-subjective truth, an intricate thread of images, a surreal yet realistic expression, and as a creative fact according to Virginia Woolf. In canon literature, a good poem is usually that which has fine structure, imagery, meaning and relevance; an art, which has sprung out not only of personal necessities but out of socio-cultural quagmires. Paul Simons The Sound of Silence transcends the mediocreRead MoreThe Power of the Pen2028 Words   |  9 PagesThroughout history many important leaders have demonstrated that the power of writing is stronger than the tyranny of man. These men were often incarcerated for fighting for what they believed in. Heroes like Mahatma Gandhi, Martin Luther King and Nelson Mandela are a few of many who fought injustice or unfair living conditions and made a difference in the lives of their fellow men by speaking out through their writings. Jimmy Santiago Baca is also a man who has been able to ch ange lives through

Structure Of The Derivatives Market Finance Essay - Free Essay Example

Sample details Pages: 13 Words: 4034 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Cause and effect essay Did you like this example? Financial market for derivatives is called derivatives market. Derivatives market is a financial instrument that provides a safety tools and effective management risk of tools in financial futures and commodity products. Derivatives market also manages the fluctuation of stock index future market, option market, interest rate and stocks. Don’t waste time! Our writers will create an original "Structure Of The Derivatives Market Finance Essay" essay for you Create order With the establishment of derivatives market, it is hope that the investors and the corporations can manage their fluctuations of the market. The example of derivatives product in Malaysia such as KLOFFE, COMMEX and MDEX. Historically, the development of derivatives market in Malaysia started in 1980, as a Kuala Lumpur Commodity Exchange (KLCE), the first futures exchange in Southeast Asia establish offering palm oil futures contract. In 1995, Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) were introduced. Its operation is for launching a stock index futures contract called KLSE Index Futures. In 1996, Malaysian Monetary Exchange (MME) was set up to facilitate the trading of three months KLIBOR futures contract and Crude Palm Oil (CPO) Futures. In 1998, KLCE combined with MME and changed its name to Commodity and Monetary Exchange of Malaysia (COMMEX). Next in 1999, the combination of two exchanges, KLOFFE and COMMEX to become Malaysia Derivatives Exchange (MDEX). MDEX trades four derivatives on that time, which is crude palm oil futures contract, KLSE Composite Index futures contract, KLIBOR futures contract and the KLSE composite options contract. In 2004, MDEX is known as Bursa Malaysia Derivatives Berhad until now. The exchange provide for trading of derivatives market. Derivatives market can be divided into two, which is exchange traded derivatives and over the counter. Exchange traded transactions are standardised contracts while over the counter transactions is more complex and be adapted to meet counterparties requirements. The most common types of derivatives market are interest rate swaps, options, futures and forward rate agreement. A forward rate agreement is a contract between two parties that determine the currency of exchange rate or the rate of interest, to be paid or received on a specific date beginning at a future start date. Futures contract is exactly the same as forward contract with one exception. With a forward con tract, the buyer and seller realize gains or losses only on the settlement date. With a future contract, gains or losses are realized daily. Options contract is an agreement that gives the owner right, but not the obligation, to buy or sell (depending on the option type) some asset at a specific price for a specified time. Options can be divided into two, call options and puts option. Call option is gives the buyer (holder) the right to but (not obligation) an underlying asset. Puts option is give the buyer the right to sell an asset and they can decide whether it is profitable to sell the underlying asset accordingly. Last but not least for the type of derivatives market is interest rate swaps. Interest rate swap is an agreement between two parties that agree to exchange of interest rate cash flows. Interest rate swap is commonly used for hedging and speculating. 2.0 STRUCTURE OF THE DERIVATIVES MARKET The structures that involve in derivatives market can be divided into four types, interest rate swaps, options, futures and forward rate agreement. The most common types used in Malaysia are options contract and futures contract. As we know futures contract is an agreement between a buyer and a seller to exchange a specified amount of cash for a specific asset at a future date. Futures contract is also a forward contract with the feature that gains and losses are realized each day rather than only on the settlement date. The differences of future contract and forward contract are that futures contract traded on exchange (the Malaysia Derivatives Exchange) with standardized agreement. The contract of futures contract was negotiated on a futures exchange which act as the intermediaries between two parties. The parties that agree to buy the underlying asset in the future contract, (the buyer) is said to be long while the party that agree to sell the underlying asset in future ( the seller) is said to be short The aim of the future contract is to minimize the risk default by the party. The types of futures contract available can be divided into two groups, commodity futures and financial futures. With a financial future, the underlying goods are financial assets such as stocks, bonds, or currencies. With a commodity future, the underlying goods can be just about anything other than a financial asset. There are commodity futures contracts on a wide variety of agriculture products. Wherever there is price volatility, there may be a demand for a futures contract and new futures contracts are introduced on a fairly regular basis. In contrast, options contract is an agreement that gives the owner the right, but not the obligation, to buy or sell some asset at a specified price for a specified time. Options can be divided into two, puts and calls. The owner of call option has the right but not the obligation, to buy an underlying asset at a fixed price, called the strike price or exercise price, for a specified time. The owner of a put option has the right but not the obligation, to sell an underlying asset at a fixed price for a specified time. The act of buying or selling the underlying asset using the option contract is called exercising the option. Some options can be exercised anytime up to and including the expiration date, other options can be exercised only on the expiration date. Because the buyer of a call option has the right to buy the underlying asset by paying the strike price, the seller of a call option is obligated to deliver the asset and accept the strike price if the option is exercised. Similarly, the buyer of the put option has the right to sell underlying asset and receive the strike price. In this case, the seller of the put option must accept the asset and pay the strike price. 3.0 THE ADVANTAGES AND DISADVANTAGES OF DERIVATIVE MARKET This market is introduced in intermediaries because to help people in order to protect the value against risk of price of asset owned going in an unfavourable direction. This market can transfer of risk from the people who are not willing to take it as hedgers to the other people who are has their intention to assume it as a speculators. From this change, there are the advantages of derivative market. 3.1 ADVANTAGES The first advantage of derivative market is enable price discovery. Derivatives market has encourage large number of people with objectives of hedging, speculation, arbitrage to take part in the market and it will increase the competition. So, the large number of people are keep track of prices and trade for a little reason. The individual with more information and better judgement are inclined to participate in the market to take advantage of such situation. When the price is change in small value, it will attract some action on the part of speculators. Active participation in the market in large number of both buyers and sellers will ensures a fair price. So, the increased number of participants will make more trades, more volumes and sensitivity to smallest of price changes facilities correct as well as efficient price discovery of assets. The second advantage of derivative market is provide leveraging. In order to take position in derivatives, the buyers require very small i nitial outlay of capital so that they can take a position in the spot market. For example, Malik is a buyer and he want involve in derivative market. He believes that the price of rice shall be at price RM30/kg in 2 month from now and that a farmer has agreed to sell it at RM28/kg. So, Malik should take this advantage to buy at full amount RM28/kg today and he will realise RM30/kg in 3 months later. However, there are the other ways that the buyer should not pay at full payment. To make this happen, they should enter into such contract. Derivatives provide those exit routes by letting one enter into a contract and can neutralize their position by booking opposite position on a future date. The third advantage is facilities transfer of risk. When we involve in derivative market, we are a way from the risk because derivative instruments do not involve risk. Instead, derivative instrument redistribute risk between the various market participants. In other word, derivative can be com pared with insurance where it provide facilities that cover against over the unfavourable market movements in return for a premium and provides opportunities to those who are willing to take risks and make profits in the process. The fourth advantages of derivative market are lower transaction costs. This is because the number of participants that involve in the market that make this happen. In the derivative market, the high number of participants that take part in the market make the cost become low. The fifth advantage of derivatives market is the market is efficient. This market is said to be efficient or in other word is to be complete market when the available instruments can by itself or jointly cover against something in possible adverse outcomes. However, it is theoretical concept which is not seen in practice. But, there is greater degree of market completeness even with the presence of derivatives market. 3.2 DISADVANTAGES However, there are disadvantages of derivative market. The first disadvantage is increased need of regulation. The large number of participants that involve in derivatives market. From this involvement, there are exist speculative positions. So, it is necessary to stop these activities which speculative to prevent people from getting bankrupt. Besides that, it also to stop the chain of defaults. The second disadvantage is raises volatility. This is because there will be many speculator when there are the large number of market participants that take part in derivative market. This is due when there involve with small initial capital due to leveraging derivatives provide. When this happen, it will leads to speculation and raises volatility in the market when they are speculate the raise and down of the price in the market. The third disadvantage of derivative market is higher number of bankruptcies. This is happen due to leveraged nature of derivatives. Participants assume pos itions so that they will buy in large amount. But, some people make a buying which do not match with their financial capabilities. As a result, it eventually leads the participants to bankruptcies. 4.0 OVERVIEW OF DERIVATIVE MARKET IN MALAYSIA Derivatives are a form of security where it is derived from one or more underlying asset. Derivative is a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and indices. Derivatives are financial instruments that are widely used to manage a participants exposure to fluctuations in the financial markets. Derivative instruments can be traded on a formal exchange or market Counter (Over-The-Counter). Futures and options are the basic products are mostly traded derivatives in formal exchanges such as Bursa Malaysia Derivatives Berhad (BMD). On September 17, 2009, Bursa Malaysia Berhad entered into a strategic partnership with the Chicago Mercantile Exchange (CME) in order to improve access to derivatives offerings globally. This includes licensing for FCPO settlement prices to position Malaysia as a global benchmark for commodity pri ces and global distribution for Bursa Malaysia through Globex electronic trading platform. CME currently holds 25 per cent equity interest in Bursa Malaysia Derivatives Berhad, while the remaining 75 percent interest held by Bursa Malaysia Berhad. Bursa Malaysia Derivatives Berhad (BMD) was established to meet the growing need for financial risk management in Malaysia. The main role of Bursa Malaysia Derivatives Berhad is to ensure market integrity and to ensure the orderly conduct of trading futures and options. Futures industry in Malaysia is governed by the Futures Industry Act 1993 FIA. FIA is a form of regulation for trading futures and options as well as the Capital Markets and Services Act 2007 (Capital Market Services Act CMSA). This regulation comes under the jurisdiction of the Securities Commission, which is authorized by the Ministry of Finance. The two organizations together responsibility for setting guidelines for the operation of Bursa Malaysia Derivatives Ber had. The Securities Commission also is the approving authority for all contracts traded in accordance with the provisions of the law and also for the licensing of participants in the market as a Futures Brokers Representative. All customers are required to place a deposit margin with Bursa Malaysia Derivatives Clearing Berhad, as a goodwill deposit before starting trading in the futures market. This deposit is known as initial margin. Typically, trading participants (Trading Participant) it is the futures broker will be a representative to collect deposits from customers and submit it to the Bursa Malaysia Derivatives Clearing Berhad.   The Bursa Malaysia Derivatives Clearing Berhad clears and manages counter party risks in relation to all contracts traded on Bursa Malaysia Derivatives Berhad. It is also regulated under the FIA 1993 and has its own business rules to govern the contractual relationship between itself with each of its Clearing Participants Below is the il lustration of the trading and clearing process: Description: https://www.apexequity.com.my/cms/img_ed/overview.jpg Bursa Malaysia Derivatives Clearing Berhad (BMDC) will secure and manage the risk of all parties involved in a trade in respect of all contracts traded on Bursa Malaysia Derivatives Berhad. BMDC also require daily settlement for all transactions, thus providing tight control over margins due to price changing. 5.0 MAIN ISSUE ABOUT DERIVATIVES MARKET 5.1 FIRST ISSUE Saturday October 20, 2012 BURSA NET PROFIT DOWN SLIGHTLY IN Q3 ON WEAKER SECURITIES TRADING PETALING JAYA: Bursa Malaysia Bhds net profit fell 4.1% to RM37.03mil in the third quarter ended Sept 30 from RM38.62mil recorded in the previous corresponding quarter on weaker securities trading. Revenue dipped 1% to RM106.21mil from RM107.31mil with earnings per share declined to 7.0 sen compared with 7.3 sen previously. Chief executive officer Datuk Tajuddin Atan  said: In the prevailing market conditions, Bursa has attained a stable performance for the first nine months of the year with a marginal growth in PATAMI (profit after tax and minority interest), driven by growth in stable revenue, derivatives business and Islamic market, and coupled with lower operating expenses. For the nine months ended Sept 30, its earnings showed a 0.8% increase to RM115.75mil from RM114.82mil previously. Revenue declined to RM322.68mil from RM324.47mil. The softer performance was in line with the weak securities trading regionally but cushioned by successful initial public off erings (IPOs) in our market, Tajuddin said in a statement. The results came after its counterpart, the Singapore Exchange, announced that a decline in trading volume dragged down its net profit for the first quarter ended Sept 30. Net profit fell 15% to S$74mil on revenue of S$160mil. Tajuddin said the stock exchange operator was committed to maintaining the level of performance by undertaking various initiatives that would accomplish its business objectives and strategies, notwithstanding the market conditions. Meanwhile, trading revenue of the derivatives market rose to RM40.6mil from RM38.7mil, attributable to the improved performance of total traded volume that rose to 6.95 million contracts against 6.32 million contracts in the first nine months of 2011, driven by the increase in the trading volume of crude palm oil futures. On the Islamic market front, Bursa Suq Al-Sila (BSAS) recorded a 79% rise in its average daily trading value to RM2.06bil for the period under review from RM1.15bil previously. The spike was due to the increasing use of BSAS as a commodity  murabahah  trading platform. https://biz.thestar.com.my/news/story.asp?file=/2012/10/20/business/12201103sec=business Summary of the news From the article above about the issue of derivatives market, we can conclude that the bursa saham suffered a declining net profit by 4.1% because of the weak security trading. The earning per share dropped from 7.3 cent to 7.0 cent. Meanwhile the derivatives market is rise up from RM38.7mil to RM40.6mil. this is because the increase of trading volume of the crude palm oil futures. 5.2 SECOND ISSUE Bursa Malaysia Derivatives wins award Published: 2012/09/19 Bursa Malaysia Derivatives (BMD) won the Best Technology Innovation by an Asian Exchange award and emerged runner-up  in the Asian Derivatives Exchange of the Year award category at the Futures Options World Award ceremony held in Singapore yesterday. Factors that contributed to the recognition included, easy accessibility and global connectivity of the Malaysian derivatives market, a statement by Bursa Malaysia Bhd today said. BMD had implemented several technological enhancements over the last two years, including migration to the Chicago Mercantile Exchanges GLOBEX Trading Platform, and hosting an Order Management System to move domestic futures brokers to a CME-certified broker front-end system. It also launched a new Derivatives Clearing System with multiple functionalities and capabilities with a SPAN risk-based margining system .  As part of its market development drive, Options on the FKLI was re-launched an d a new product, Options on Crude Palm Oil futures contract (OCPO) was subsequently launched in July 2012. Derivatives is becoming well accepted as a tradable and hedging product that create opportunities and we see huge potential in this market. The partnership with the Chicago Mercantile Exchange (CME) Group has indeed assisted our growth story. This award recognition, clearly validates the economic path that Malaysia has taken to globalise the derivatives market, the Chief Executive Officer of Bursa Malaysia and BMD Chairman, Datuk Tajuddin Atan said. Tajuddin said the strong support from the Ministry of Finance, Securities Commission, Bank Negara Malaysia and Trading Participants have been key to transitioning Malaysia into a regional and global marketplace. Bernama   https://www.btimes.com.my/Current_News/BTIMES/articles/20120919212211/Article/index_html#ixzz2Ce5mBzKX Summary of the news The article conclude that Bursa Malaysia Derivatives (BMD) won awards for the achievements in the year 2012. Factors that contributed to the recognition included, easy accessibility and global connectivity of the Malaysian derivatives market. BMD also had implemented several technological enhancements over the last two years, including migration to the Chicago Mercantile Exchanges GLOBEX Trading Platform, and hosting an Order Management System to move domestic futures brokers to a CME-certified broker front-end system.  It also launched a new Derivatives Clearing System with multiple functionalities and capabilities with a SPAN risk-based margining system. CEO of Bursa Malaysia and BMD chairman, Datuk Tajuddin Atan stated that the award has taken Malaysia to the globe of the derivatives market. 6.0 CONTRIBUTION TO MALAYSIA ECONOMY Economy of a certain country depends basically form the demand and supply. Derivatives market in Malaysia is largely being used in the economy in the world including Malaysia. The markets have many importance towards the economy stabilization and growth. The derivatives market introduced because to help people value against risk of price owned going to unfavourable direction and this means that this will make it secure of people in Malaysia to use the derivatives market as the financial instrument. This will lead to the growth of the economy in Malaysia. The derivatives market play a vital role both financial and non-financial institutions. In Malaysia the increasing of volume of trading derivatives market is the crude palm oil. Over the past nine months the increasing of the volume of crude palm oil make the total traded in the market is the highest. It is also true that growth of derivatives market reveal the increasing market demand for risk managing instrument in the econ omy. But the major concern is the main components of OTC derivatives are interest rates and currency swaps. Then economy basically will suffer if the derivatives is misused and if a major takes place in derivatives market. The derivatives markets provide facilities for investors who require innovative investment tools and flexible to take advantage of the opportunities of the global market, this will lead to increase number of investors in Malaysia. Offering appropriate above-average returns to investors and portfolio protection, and offers facilities for hedging activities that can produce efficient financing for the investment portfolio will make a big contribution towards the growth of economy in Malaysia. Derivatives Market never failed to contribute to the growth of Malaysia economy because it is nowadays the most growing market in Malaysia. 7.0 CHALLENGES IN THE DERIVATIVES MARKET Derivatives give an impact on the financial economy as well as the real economy in the country. It is because there is much risk in this market. The price and rate volatility have increased in recent decades. This can cause for concern for a particular firm depends on the nature of the firms operations and its financing. The price fluctuations have greatest impact on the value of the firm. Sometimes it will be obvious, but sometimes they will not be. The derivatives may result in large losses to the investors because of the use of leverage or borrowing. The investors assume positions which do not match their financial capabilities and they could lose large amounts if the price of the underlying moves against them significantly. It will curtail real economic activity, which can cause a recession. It exposes investor to counter party risk in a financial transaction. Investment losses can occur if the investors lack of research and sound investment because they are not prepared well. The risk transfer factor needs to be applied in a targeted way in order to ensure that the investor does not take unnecessary risks, especially in swaps derivatives. Different types of derivatives have different levels of counter party risk. The derivatives give the challenge to those who are not familiar with speculative markets. It trade directly and only on uncertainty. It becomes relevant for volatility in the financial markets and is not in direct correlation with the fundamental value of the assets that are being traded in the derivatives market. An investor who cannot adapt with uncertainty in investment will tend to take different type of investment structure. Some derivative contracts involve foreign currency that is associated with transactions in the underlying item. The firm must exchange foreign currency for domestic currency to realize the domestic value of its foreign-denominated in a foreign currency. They face a risk of changes in the exchange rate betwe en the foreign and domestic currency as they negotiate contracts with set prices and delivery dates in the face of a volatile foreign exchange market with exchange rates constantly fluctuating. The time decay of an options contract can affect the investors because they have to pay a fee for the trade for which is never transacted. But it also can affect the buyer where he will lose that fee which secured the option to buy if he chooses not to complete the transaction. So the challenges that happened in the derivatives market in some ways weakens the basis of asset price. Financial stability as observed with the role of derivatives is effectively based on price changes as derivatives have little relation to the principal asset prices and only work on the price changes for these assets. 8.0 CONCLUSION The derivatives market gives benefits to the investors and the overall economy of a country. They can create a new business, and any employment opportunities from the profit they gained from the derivatives market. A derivative products value depends upon and is derived from an underlying instrument, such as commodity prices, exchange rates, interest rates, indices and share prices. It instruments can be traded in an organized exchange or over-the-counter (OTC). The exchange traded transactions are standardized contracts whereas the over the counter transactions are tailored to investors requirements. The derivative gives benefits such as (i) Provide facilities to investors who need an investment tool that is innovative and flexible and can take the opportunities of global markets; (ii) Offers above-average returns and portfolio protection to investors, and (iii) Offer facilities for hedging activities that can produce an efficient financing for the investment portfolio. T he derivatives market contains the instruments that are very complex such as futures, and options contracts. The investors need to have a good knowledge and understanding in order to success in trading futures and options. It is because the derivatives work on price changes, or volatility of the asset prices. This market transfer risks from one party to another party.