Derivative security

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Derivative security

A financial security such as an option or future whose value is derived in part from the value and characteristics of another security, the underlying asset.

Derivative Security

Futures, forwards, options, and other securities except for regular stocks and bonds. The value of nearly all derivatives are based on an underlying asset, whether that is a stock, bond, currency, index, or something else entirely. Derivative securities 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 exchanges include the Chicago Mercantile Exchange and Euronext LIFFE.
References in periodicals archive ?
-- financial derivatives not included in official reserve assets###A###A###A###A
* Assets excluding financial derivatives increased $1.83 trillion to $25.58 trillion.
"We are working on releasing the first financial derivatives to empower foreign investment, and we allow foreign companies to enlist in the Saudi capital market," ElKuwaiz told delegates.
The addition of these products provides our customers with greater flexibility to manage risk in a capital efficient manner, in the deepest pool of MSCI derivatives liquidity, said Chris Rhodes, Global Head of Financial Derivatives at ICE Futures.
With hindsight, the best and brightest financial brains on both sides of the Atlantic were blind to the weaknesses of their complex financial systems, turbo-charged with financial derivatives that Warren Buffett famously called 'weapons of mass destruction'.
Risk Takers: Uses and Abuses of Financial Derivatives, 3rd Edition
Salalah, July 16 (ONA) The three-day training program on financial derivatives, organized by the Capital Market Authority (CMA) in cooperation with Union of Arab Securities Authorities (UASA) today started at Crowne Plaza Salalah Hotel.
APEX will offer futures and options contracts covering both commodity and financial derivatives products, including agriculture, energy, petrochemical, metal, interest rates and stock indices.
He further said that the Diploma in Capital Market will prepare the securities markets professionals with a good understanding of the capital markets, it offers individuals the opportunity to gain specialist knowledge of financial markets, fixed income, financial derivatives, bonds and fund management.
The participants also discussed various issues related to the current challenges in the capital markets such as the importance of regional cooperation, the role of financial markets in promoting innovation and supporting future economic projects, Islamic instruments and financial derivatives and their role in emerging markets, the statement added.
Doha received FDI to the extent of QR135.8bn (18% of the total inward overseas investments), foreign other investments of QR512.9bn (69%), foreign portfolio investment of QR89.4bn (12%), and financial derivatives of QR5.1bn (1%) at the end of Q2, 2017.
The regulatory expansion resulted in the addition of new licenses through MEX Asset Management GmbH in Germany (regulated by BaFin), MultiBank FX International in the British Virgin Islands (regulated by the FSC) and MEX Wealth Management Limited in the Cayman Islands (registered with CIMA), making MultiBank Group one of the most regulated online financial derivatives company in the industry.

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