DERIVATIVES MARKETS

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FRB: Speech, Greenspan -- Government regulation and derivative contracts -- February 21, 1997

  • Remarks by Chairman Alan Greenspan Government regulation and derivative contracts At the Financial Markets Conference of the Federal Reserve Bank of Atlanta, Coral Gables, Florida February 21, 1997 I am pleased to participate once again in the Federal Reserve Bank of Atlanta's annual Financial Markets Conference.
  • . The rapid evolution of products and markets has led many to conclude that market regulatory structures, many of which were established in the 1920s and 1930s, have become increasingly outdated.
  • . Some see new products and markets not covered by government regulation and fear the consequences of so-called "regulatory gaps." Others see old government regulations applied to new instruments and markets and fear the unintended consequences of what seems unnecessary and burdensome regulation.
  • . In my remarks today I shall proffer a set of considerations that I find quite valuable as a guide to decisions about the need for government regulation of financial markets.
  • . I shall then review the history of government regulation of derivative contracts and markets in the United States and consider the current regulatory structure for those products and markets in light of these considerations.



    FRB: Testimony, Phillips -- Reform of derivatives under the Commodity Exchange Act -- April 15, 1997
  • . banking organizations, especially the largest, are very significant participants in derivatives markets.
  • . financial markets.
  • . Since then, derivatives markets in the United States have undergone profound changes.
  • . Outside the futures exchanges, enormous markets have developed in which banks, corporations, and other institutions privately negotiate customized derivatives contracts, the vast majority of which are based on interest rates or exchange rates.
  • . The cash markets for such financial instruments were well-developed long before the introduction of exchange-traded futures and options and, for some instruments, privately negotiated derivatives also predated exchange trading.
  • . In my remarks today I shall indicate the types of amendments to the CEA that the Board believes are appropriate in light of these profound changes in the derivatives markets.
  • . I shall begin by offering some general observations about government regulation of financial markets.
  • . I shall then evaluate three sets of issues in which the Board has a particular interest: (1) the application of the CEA to privately negotiated transactions between institutions; (2) the regulation of the marketing of off-exchange derivatives to retail investors; and (3) the regulation of so-called professional markets, that is, organized exchanges not open to the general public.



    BCTIA News Release | March 20, 2006: Expanding Derivatives Markets Drive Rapid Growth at FINCAD
  • BCTIA Members News March 20, 2006 Expanding Derivatives Markets Drive Rapid Growth at FINCAD Vancouver, B.C.



    NOS
  • . The Norwegian derivatives market has been adversely affected by the world wide decline within the financial markets, but NOS and Oslo Brs see good opportunities for renewed growth by attracting institutional investors.
  • . This market segment represents a major customer group within most international derivatives markets, but has, so far, been virtually absent from the Norwegian market.
  • . These new target markets will be met with information and improved trading and clearing services adapted to give the investors an overview enabling them to perform swifter, more precise and safer investment decisions.

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    Photo by www.norges-bank.no


    Bank of Ireland Selects Summit for Credit Derivatives
  • . Bank of Ireland Global Markets is responsible for global treasury operations within the Bank of Ireland Group and will install Summit at their HQ in Dublin.
  • . This purchase builds upon the Bank’s existing Summit modules that include money markets, fixed income and interest rate derivatives.
  • . “We reviewed a number of software solutions in addition to Summit, ” says Lorcan Connolly, Head of IT for Bank of Ireland Global Markets.
  • . “Although we had already installed Summit for other products within Global Markets, we wanted to make sure we were making the right decision to support our new business area.
  • . Sean Crowe, Head of Trading for Bank of Ireland Global Markets adds, “I was impressed by Summit’s product knowledge and the capability of its solution.
  • . Global Markets provides wholesale pricing for corporate, business and institutional customers, tailoring individual packages to suit the investment and hedging needs of our large and diverse customer base.


    Investment banking in global financial markets - Dresdner Kleinwort Wasserstein
  • . Claus Siegmeier and Frank Meyer join DrKW's Liquid Markets team in Germany.
  • . Claus, who joins as a director from Commerzbank, will be responsible for covering all active investors in liquid markets in the Netherlands.
  • . Commenting on the appointments, Tarek Mahmoud, global head of Sales & Marketing said: "These appointments underline our commitment to growing our customer business in the key markets of Germany and Austria.
  • . They bring with them a wealth of experience covering the insurance as well as other key domestic sectors and will complement and enhance our client franchise." Media Enquiries: DrKW London: Rowan Staines+ 44 (0) 20 7475 5828 DrKW Frankfurt: Elke Pawellek + 49 69 263 16712 Note to Editors: Dresdner Kleinwort Wasserstein (DrKW) is the marketing name for the investment bank within the Corporates and Markets Division of Dresdner Bank AG, a member of the Allianz Group since July 2001.
  • . Headquartered in London, Frankfurt and New York and with an international network of offices, DrKW provides a wide range of investment bank products and services to European and international clients through its Capital Markets and Corporate Finance & Advisory business lines.


    Micex | News Room | London Stock Exchange and MICEX Stock Exchange sign joint marketing agreement
  • . We look forward to contributing to the development of Russias capital markets by working with MICEX Stock Exchange to raise awareness of the IPO opportunities for Russian issuers and investors. Alexei Rybnikov, Chief Executive of the MICEX Stock Exchange, said: We are seeing a strong pipeline of Russian companies who are interested in raising equity capital to finance growth.
  • . By the end of 2005, the market capitalisation of UK and international companies on the London Stock Exchanges markets amounted to £4.1 trillion, with £5.2 trillion of equity business transacted over the year.
  • . The London Stock Exchange is a Recognised Investment Exchange (RIE) under the Financial Services and Markets Act 2000 and is supervised by the Financial Services Authority.


    DERIVATIVES WEEK : Derivatives, Swaps, Options & Structured Finance News
  • . The pickup in short-dated implied volatility coupled with falling stock markets is providing ideal pricing conditions for short-term equity-linked notes.
  • . A wave of early redemptions on structured equity products has hit Asia, as a result of continuing gains in regional stock markets.

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    Photo by www.kellogg.northwestern.edu


    Credit Default Swap Players Play Hard
  • . A credit derivative trader at Nomura in London points out that the CDO and CDS markets are increasingly building on each other.


    Environmental Finance
  • . "But we will be participating in the weather derivatives markets." Weather hedges allow companies to protect their revenues from adverse weather conditions.
  • . US brokerage Cantor Fitzgerald and eSpeed, the Cantor offshoot company that runs electronic trading platforms, have joined forces to launch two new electronic markets for trading emissions allowances.


    SEC Testimony: OTC Derivatives (R. Lindsey)
  • . Financial Markets By Richard R.
  • . It is clear that events in the OTC derivatives market can impact the capital markets as well.
  • . They failed to take into account any serious possibility that very low probability events – events not previously seen in modern markets – might occur.
  • . They emphasize the need for effective management of complex financial activities, and for careful oversight of the activities of financial institutions in these markets.
  • . Working Group Study Although these highly publicized incidents have explanations not directly related to any inherent risks in OTC derivative instruments or markets, we believe the OTC derivatives markets in general deserve further study.
  • . Among other things, the Working Group will need to assess the lessons of the incidents discussed above to determine whether additional steps should be taken to safeguard the increasingly sensitive and interconnected financial markets, where risks can become magnified by volume, technology, and complexity.