Issues Derivative Instruments

With the collapse of Barings, the expulsion of Daiwa Bank from the US, and the bankruptcy of Orange County California, and the Long-Term Capital Managements problems, derivatives are increasingly intruding into the public consciousness. Key issues are whether derivatives are sufficiently understood and how they can be effectively regulated.

These are increasingly acute because, as recent statistics show, derivatives, with a turnover of more than $2 trillion a day, constitute the world's biggest business activity. For lawyers, regulators and compliance officers operating in the international market, it is increasingly important to have a firm grasp of where derivatives fit in the financial services spectrum and how they are regulated in major market centres.

This book provides critical information on these issues. Unlike other books on derivatives, this book draws on a broad spectrum of legal, regulatory, tax, and clearing and exchange trading expertise from both sides of the Atlantic. Consequently, it provides a valuable resource for the views of leading experts from a variety of disciplines.

It includes chapters by the market counsel of one of the world's leading exchanges, a managing director of one of the world's most important clearing houses, and the former chief derivatives regulator of the US, in addition to legal analysis and explication of a number of important derivatives issues by UK and US legal experts.

Along with Mr. Swan's previous volume, Derivative Instruments, this is an excellent source of information to help newcomers learn about derivative instruments and to help experienced practitioners expand their understanding of the key issues involved.