Derivative markets

Derivative markets

Derivative Market

The market for the sale of futures, forwards, options, and other securities except for regular stocks and bonds. Derivatives may be traded on an exchange or over-the-counter. Derivatives are often traded as speculative investments or to reduce the risk of one's other positions. Prominent derivative exchange includes the Chicago Mercantile Exchange and Euronext LIFFE.
References in periodicals archive ?
'We can see derivative markets everywhere in Asean, except our country.
Citi Futures is one of the world's largest participants in exchange-traded derivative markets and has also established itself as a market leader in the evolving OTC Clearing world.
Citi Futures is a participants in exchange-traded derivative markets and has also established itself in the evolving OTC Clearing world.
However, derivatives markets can also lead to excessive and opaque risk taking which may result in systemic risk, especially so in context of Over the Counter (OTC) derivative markets. Based on these concerns, G20 called on the international standard setting bodies to reform the derivatives markets to ensure that systemic risk concerns arising from derivatives markets are contained.
TMX operates cash and derivative markets in Canada, the US and internationally.
Where commodity derivative markets exist and market authorities were yet to be fully compliant, many of those market authorities had identified initiatives aimed at achieving full compliance over time.
The partnership enables online exchange clients to incorporate the risk management tools of derivative markets into their procurement capabilities, providing a comprehensive trading system with an integrated clearing and settlement function, regulatory certainty and flexible product authoring.
Businesses buying electricity derivatives should make sure that advice comes from an intermediary with experience in this relatively new market, which is somewhat different from other energy derivative markets, and quite different from interest-rate and commodity derivatives.
"The Recent Growth of Financial Derivative Markets." FEDERAL RESERVE BANK OF NEW YORK QUARTERLY REVIEW 17, no.
These liquidity problems and concerns about the clearinghouses might, in turn, have contributed to the break in the arbitrage link between the cash and derivative markets that sent markets into free fall on October 19.
In order to address risks related to the derivative markets, the European Parliament and the Council have adopted the European Market Infrastructure Regulation (EMIR) - formally known as Regulation EU No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (EMIR).
This delivers on the Governments commitment to create a resilient financial system and to facilitate participation of Australian entities in international derivative markets and to better protect retail investors, Minister ODwyer said.