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Lessons in structuring derivatives exchanges
Journal article

Lessons in structuring derivatives exchanges

George Tsetsekos and Panos Varangis
The World Bank research observer, v 15(1), pp 85-98
01 Feb 2000

Abstract

Commodity prices Currency Derivatives Developing countries Electronic trading systems Emerging markets Exports Financial instruments Foreign exchange rates Institutional investments Interest rates International LDCs Market economies Over the counter trading Risk management Securities markets Stock exchanges Studies Supply & demand Volatility
The global deregulation of financial markets has created new investment opportunities, which in turn require the development of new instruments to deal with the increased risks. Institutional investors who are actively engaged in industrial and emerging markets need to hedge their risks from these cross-border transactions. Agents in liberalized market economies who are exposed to volatile commodity price and interest rate changes require appropriate hedging products to deal with them. And the economic expansion in emerging economies demands that corporations find better ways to manage financial and commodity risks. The instruments that allow market participants to manage risk are known as derivatives. Derivatives are traded in organized exchanges or over the counter by derivative dealers. Since the mid-1980s, the number of derivatives exchanges operating in both industrial and emerging-market economies has increased substantially. The benefits these exchanges provide to investors and to the home country are discussed.

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16 citations in Scopus

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Collaboration types
Domestic collaboration
Web of Science research areas
Development Studies
Economics
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