Swaps are among the most profitable types of financial derivatives carried out by the banks.
Chicago's exchanges have kept their position as the leaders in the world's trading of financial derivatives.
This covers a wide range of pursuits, from managing a grocery store to selling financial derivatives.
The exchange handles trading in shares, as well as in debt, currencies and financial derivatives such as options.
Financial derivatives can work like traditional insurance: they shift market risks to somebody else for a fee (premium).
JPMorgan is the world's largest proprietary purchaser of financial derivatives -- precisely what the Volcker Rule sought to end.
Untrammelled speculation in commodities and financial derivatives brought the financial world to the brink of collapse just three years ago.
Use financial derivatives rather than traditional asset diversification to cut markets risks.
"It is very likely there are huge losses still to come, " says economist Bismarck Rewane, of Financial Derivatives, a finance research and analysis firm.
Additionally, none of the Grupo Salinas companies holds speculative financial derivatives.
Presenting his proposals to reform trading in financial derivatives on Thursday, Barnier suggested the ban could be extended to downgrades of countries negotiating to join the bailout.
Unfortunately legal ethics generally permit all lawyers to claim to be competent to handle matters ranging from wills, divorces and traffic tickets to financial derivatives, hedge funds and soft-dollar trading.
Unfortunately legal ethics generally say that all lawyers can claim to be competent to handle all matters from wills, divorces, traffic tickets, real estate closings to financial derivatives, hedge funds, and soft dollar trading.
Use financial derivatives rather than traditional asset diversification.
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However, profiting from the mispricing of risk in multiple-currency financial derivatives, or from the fact that a particular supermarket chains are undervalued, are harder for people outside the enclaves of Wall Street or the City of London to understand.
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According to Bismarck Rewane, an analyst at Lagos-based Financial Derivatives, many of the banks have managed to meet the capitalisation benchmark by raising capital through share offerings and entering into special treaties which sometimes involve the exchange of loans for deposits.
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Their most important role, perhaps, is in setting the prices for complicated financial transactions called derivatives.
Instinet acquired TORC Financial, a derivatives trading technology firm, last August.
Harvard and Yale in particular expanded their endowments' investments beyond the traditional bounds of fixed-income and equities and into exotic financial instruments like derivatives, hedge funds and leveraged investment products.
Financial innovation in derivatives soared ahead of the rule-setters.
Khuzami also added five additional units to oversee various areas of the financial industry: asset management, large scale market abuses, complex derivatives and financial products, foreign bribery and corruption, and the municipal and public pension markets.
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Delta One traders use sophisticated financial techniques, including derivatives, to construct investments - such as Exchange Traded Funds (ETFs) - that track financial indices or products.
He has proposed a substantial simplification of taxation of financial products such as derivatives.
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Non-financial firms that use derivatives are keen to escape the new rules.
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According to the Association of Corporate Treasurers, the vast majority of interest rate derivatives involve financial companies, such as banks, investment firms, insurers and hedge funds.
Anyone who has followed the crisis will understand that the real economy of businesses and commodities is being upstaged by complicated financial instruments known as derivatives.
Yet it quietly built itself into a juggernaut in the global financial system by using derivatives to insure hundreds of billions of dollars of corporate loans, mortgages and other debt.
Derivatives are financial instruments whose value is based on some underlying asset, like a mortgage for instance, and and can be used to either hedge risk or for completely speculative positions.
The enforcement chief also created five specialized units to oversee the following areas: asset management, large scale market abuses, complex derivatives and financial products, foreign bribery and corruption, and the municipal and public pension markets.
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That's a nice way of saying that during recent years the Harvard Management Company, the university's investment subsidiary, diverted large portions of the university's endowment assets out of safe but poky low-yield securities (as of last June fixed-income investments accounted for only 16% of Harvard's portfolio) and into what this Forbes story describes as "exotic financial instruments": derivatives, hedge funds, private equity partnerships, commodities and emerging-market equities.
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