Summary |
Financial derivatives facilitate greater diversification of investment and enables risk to be transferred across national financial systems. The resulting improvement in allocation of risks has made overall capital markets more efficient, while the availability of derivatives to both limit and leverage risks exposures has increased market capitalization and liquidity in the underlying cash markets. But emerging derivative markets also pose important challenges to financial stability, particularly in areas where vulnerabilities to changes in risk extend across institutions and national boundaries. Emerging market regulators recognize the importance of developing derivative markets; they remain concerned about potentially excessive risk-taking, particularly in the context of rapid evolution of products, inadequate understanding of risk management techniques, and limited supervisory capacity.
This volume is designed to contribute to the existing body of literature available on financial derivatives and also meet the need for a comprehensive guide to the complexities in financial derivatives. Hence it will commend itself to all the category of readers, particularly Academicians, Researchers, Financial Derivatives Market Stakeholders, Investors, Speculators, and the Student community.
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