Understanding Derivatives: Markets and Infrastructure

A reference book about derivatives published by the financial markets group.

Chapter 1: Derivatives Overview (Revised, August 2013)

Richard Heckinger

This chapter explains what derivatives are, how they are traded and the role they play in risk management. Read more...

Chapter 2: Central Counterpary Clearing

Robert Steigerwald

This chapter describes what central counterparty clearing is, what its role is in risk management of deriviatives and how it is structured legally. Read more...

Chapter 3: Over-the-Counter Derivatives

Richard Heckinger  Ivana Ruffini  Kirstin Wells

This chapter descibes what over-the-counter derivatives are, who trades them and how they are created and fulfilled. Read more...

Chapter 4: Hedging

Richard Heckinger  Ivana Ruffini

This chapter explains the concept of hedging and illustrates the risk–reward tradeoff inherent in hedges through examples. Read more...