文档介绍：本科毕业论文(设计)
外文翻译
题目 Derivatives, risk and regulation:chaos or confidence?
外文出处 International Journal of Bank Marketing
外文作者 R. Dixon, . Bhandari
原文: Derivatives, risk and regulation:chaos or confidence?
Introduction
The paper begins with an examination of derivatives: what they are and where there are calls for their use to be regulated in both UK and global capital markets and economies. The forms regulation could take, as proposed by the Securities and Futures Authority (SFA), are considered. The paper then reviews the principal concerns of regulatory bodies and concludes with a look at the latest developments in trading and regulation. mendations were submitted to players in the capital markets and ments sought by means of telephone interviews. ments are listed. The principal aim of regulation – the reduction of any market volatility – is discussed and some suggested regulatory instruments evaluated.
What are derivatives?
Risk management techniques are primarily structured to reduce risk. Derivative instruments, used as risk management tools, have potential to be more risky than the underlying cash instrument, though the exchanges on which many derivative instruments are traded help to spread risk. When panies do a deal, a clearing house, usually owned and operated by exchange members’ firms, steps in to e the counterparty to both trades. If one party defaults, the other will not suffer unless the default is so huge as to exhaust the exchange’s own capital reserves. However, the over-the-counter (OTC) markets do not have this concept of a central clearing house, and it is quite possible that risk management strategies may prove to be fatal in the event of adverse price movement. Combinations of factors – like new methods and risks, the lack of a relevant framework for keeping records, and the focus of derivatives’ activity among only a few large players in the market – could result in a precarious situation. Nevertheless, as de Boissieu states: