Managing Derivatives Contracts

Managing Derivatives Contracts

This book focuses on the processes and systems in the derivatives contract life cycle that underlie and implement the activities of derivatives trading, pricing, and risk management.

Author: Khader Shaik

Publisher: Apress

ISBN: 9781430262756

Category: Business & Economics

Page: 492

View: 669

"I am sure practitioners, auditors, and regulators will find the content of Mr Shaik's book of value. The accessible style is also welcome. All in all, a worthwhile addition to the finance literature and one that hopefully helps plug the knowledge gap in this field." — from the foreword by Professor Moorad Choudhry, Brunel University Managing Derivatives Contracts is a comprehensive and practical treatment of the end-to-end management of the derivatives contract operations, systems, and platforms that support the trading and business of derivative products. This book focuses on the processes and systems in the derivatives contract life cycle that underlie and implement the activities of derivatives trading, pricing, and risk management. Khader Shaik, a Wall Street derivatives platform implementation expert, lays out all the fundamentals needed to understand, conduct, and manage derivatives operations. In particular, he provides both introductory and in-depth treatment of the following topics: derivative product classes; the market structure, mechanics, and players of derivatives markets; types of derivative contracts and life cycle management; derivatives technology platforms, software systems, and protocols; derivatives contracts management; and the new regulatory landscape as shaped by reforms such as Dodd-Frank Title VII and EMIR. Managing Derivatives Contracts focuses on the operational processes and market environment of the derivatives life cycle; it does not address the mathematics or finance of derivatives trading, which are abundantly treated in the standard literature. Managing Derivatives Contracts is divided into four parts. The first part provides a structural overview of the derivatives markets and product classes. The second part examines the roles of derivatives market players, the organization of buy-side and sell-side firms, critical data elements, and the Dodd-Frank reforms. Within the framework of total market flow and straight-through processing as constrained by regulatory compliance, the core of the book details the contract life cycle from origination to expiration for each of the major derivatives product classes, including listed futures and options, cleared and bilateral OTC swaps, and credit derivatives. The final part of the book explores the underlying information technology platform, software systems, and protocols that drive the end-to-end business of derivatives. In particular, it supplies actionable guidelines on how to build a platform using vendor products, in-house development, or a hybrid approach.
Categories: Business & Economics

Review of Reports by the U S General Accounting Office and the Commodity Futures Trading Commission on Derivative Products

Review of Reports by the U S  General Accounting Office and the Commodity Futures Trading Commission on Derivative Products

... Is Critical to Managing Derivatives Activities Credit Risk Is a Key Consideration
in Managing OTC Derivatives Managing Market Risk for Derivatives Can Be
Complex Various Factors Affect Legal Enforceability of Derivatives Contracts
Major ...

Author: United States. Congress. House. Committee on Agriculture. Subcommittee on Environment, Credit, and Rural Development

Publisher:

ISBN: UCR:31210014058562

Category: Derivative securities

Page: 311

View: 251

Categories: Derivative securities

Safety and Soundness Issues Related to Bank Derivatives Activities

Safety and Soundness Issues Related to Bank Derivatives Activities

Ensuring that derivatives are used in ways that are consistent with the overall risk
managanant and capital policies of the fin . valuing derivatives at market , at ...
product master agregants with close - out natting provisions , and by working with
other participants to ensure the legal anforceability of derivative contracts .
Establishing sophisticated Information systems capable of managing derivative
risk .

Author: United States. Congress. House. Committee on Banking, Finance, and Urban Affairs

Publisher:

ISBN: LOC:00103391842

Category: Banks and banking

Page: 819

View: 756

Categories: Banks and banking

H R 2575 the Secondary Mortgage Market Enterprises Regulatory Improvement Act

H R  2575  the Secondary Mortgage Market Enterprises Regulatory Improvement Act

To limit the risk of a default on a derivatives contract , Fannie Mae engages in
new derivatives contracts only with well - established , high credit quality
counterparties that are experienced in managing derivative books . As of the end
of 2002 ...

Author: United States

Publisher:

ISBN: PSU:000053973665

Category: Mortgage loans

Page: 275

View: 213

Categories: Mortgage loans

Financial Derivatives

Financial Derivatives

This book is a comprehensive, industry-independent exploration of financial derivatives which offers an insightful look inside financial derivatives that is sweeping corporate world, banks, and investment finance.

Author: Bishnupriya Mishra

Publisher: Excel Books India

ISBN: 8174465723

Category: Finance

Page: 246

View: 961

In the recent decade, financial markets have been marked by excessive volatility and are associated with various risks. Derivatives are the instruments for managing risks. Derivatives are financial contracts whose value/price is dependent on the behavior of the price of one or more basic underlying assets which may be commodity or financial asset. In recent years, derivatives have become increasingly important in the field of finance. The book discusses at large the meaning, basic understanding, pricing and trading strategies of the financial derivatives. Common derivatives include options, forward contracts, futures contracts, and swaps. While futures and options are now actively traded on many exchanges, forward contracts are popular on the OTC market. This book provides a broad-based introduction to the technical aspects of the main classes of derivatives, the markets in which they are traded and the underlying concepts. This book is a comprehensive, industry-independent exploration of financial derivatives which offers an insightful look inside financial derivatives that is sweeping corporate world, banks, and investment finance. From reviewing the basic building blocks of financial derivatives to systematically examining the myriad of processes involved in creating innovative financial instruments, this lucid text provides professional advice to the learners. This book is intended as a text for MBA students specializing in the area of Finance, students of CA/ICWA, students of M.Com, academicians, researchers, practitioners and investors in general.
Categories: Finance

Shipping Derivatives and Risk Management

Shipping Derivatives and Risk Management

Instead , price risk is usually managed through derivative contracts , such as
forwards , swaps and options , which enable price risk to be shifted to participants
who may have an opposite exposure to the particular risk . For instance , an ...

Author: A. Alizadeh

Publisher: Palgrave Macmillan

ISBN: 0230215912

Category: Business & Economics

Page: 499

View: 913

A comprehensive book on shipping derivatives and risk management which covers the theoretical and practical aspects of financial risk in shipping. The book provides a thorough overview of the practice of risk management in shipping with the use of theoretical examples and real-life applications.
Categories: Business & Economics

Reducing Risks and Improving Oversight in the OTC Credit Derivatives Market

Reducing Risks and Improving Oversight in the OTC Credit Derivatives Market

Derivative contracts remain concentrated in interest rate products , which
comprise 79 % of total derivative notional value . ... Second , because the highly
specialized business of structuring , trading , and managing derivatives
transactions ...

Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Securities, Insurance, and Investment

Publisher:

ISBN: UOM:39015090411797

Category: Credit derivatives

Page: 167

View: 885

Categories: Credit derivatives

Managing Derivatives Risk

Managing Derivatives Risk

Managing Derivatives Risk by Dimitris N. Chorafas is the first book to focus solely on the risk of derivative instruments themselves and provides working solutions for the management of the derivatives portfolio.

Author: Dimitris N. Chorafas

Publisher: McGraw Hill Professional

ISBN: 1557387788

Category: Business & Economics

Page: 406

View: 220

Despite recent criticism, the derivatives market has continued to boom. This wake-up call has reminded investors that derivatives do not eliminate risk, they simply divert it. And as with any risk-bearing instrument, effective risk management is critical. Managing Derivatives Risk by Dimitris N. Chorafas is the first book to focus solely on the risk of derivative instruments themselves and provides working solutions for the management of the derivatives portfolio. Based on the experience of investment banks and capital markets firms throughout the world, Managing Derivatives Risk addresses itself to the challenges that derivatives risk management presents and on the established methods of facing them.
Categories: Business & Economics

Derivatives and Equity Portfolio Management

Derivatives and Equity Portfolio Management

This in-depth guide integrates the derivatives process into portfolio management and is replete with applications from authors with extensive Wall Street experience.

Author: Bruce M. Collins

Publisher: John Wiley & Sons

ISBN: 1883249600

Category: Business & Economics

Page: 230

View: 354

Frank Fabozzi and Bruce Collins fully outline the ins and outs of the derivatives process for equity investors in Derivatives and Equity Portfolio Management. A significant investment tool of growing interest, derivatives offer investors options for managing risk in a diversified portfolio. This in-depth guide integrates the derivatives process into portfolio management and is replete with applications from authors with extensive Wall Street experience. Whether you're and individual investor or portfolio manager seeking to improve investment returns, you'll quickly learn about listed equity contracts, using listed options in equity portfolio management, risk management with stock index futures, OTC equity derivatives-and profit from your new found knowledge.
Categories: Business & Economics

Derivatives

Derivatives

The complete guide to derivatives, from the experts at the CFA Derivatives is the definitive guide to derivatives, derivative markets, and the use of options in risk management.

Author: Wendy L. Pirie

Publisher: John Wiley & Sons

ISBN: 9781119381815

Category: Business & Economics

Page: 624

View: 533

The complete guide to derivatives, from the experts at the CFA Derivatives is the definitive guide to derivatives, derivative markets, and the use of options in risk management. Written by the experts at the CFA Institute, this book provides authoritative reference for students and investment professionals seeking a deeper understanding for more comprehensive portfolio management. General discussion of the types of derivatives and their characteristics gives way to detailed examination of each market and its contracts, including forwards, futures, options, and swaps, followed by a look at credit derivatives markets and their instruments. Included lecture slides help bring this book directly into the classroom, while the companion workbook (sold separately) provides problems and solutions that align with the text and allows students to test their understanding while facilitating deeper internalization of the material. Derivatives have become essential to effective financial risk management, and create synthetic exposure to asset classes. This book builds a conceptual framework for understanding derivative fundamentals, with systematic coverage and detailed explanations. Understand the different types of derivatives and their characteristics Delve into the various markets and their associated contracts Examine the use of derivatives in portfolio management Learn why derivatives are increasingly fundamental to risk management The CFA Institute is the world's premier association for investment professionals, and the governing body for the CFA, CIPM, and Investment Foundations Programs. Those seeking a deeper understanding of the markets, mechanisms, and use of derivatives will value the level of expertise CFA lends to the discussion, providing a clear, comprehensive resource for students and professionals alike. Whether used alone or in conjunction with the companion workbook, Derivatives offers a complete course in derivatives and their markets.
Categories: Business & Economics

Managing Currency Risk

Managing Currency Risk

This can have a very damaging effect on a company's financial performance if it is not anticipated. In this book, John Stephens demonstrates how to manage this risk with the use of financial derivatives.

Author: John J. Stephens

Publisher: John Wiley & Sons

ISBN: 9780470848081

Category: Business & Economics

Page: 218

View: 647

Control the number one cause of financial loss currency fluctuation With cross-border commerce now the global norm, companies must now face the greatest threat to their financial stability: financial losses due to currency fluctuations. Written by an international business and banking expert, Managing Currency Risk is an authoritative, accessible look at the variety of methods used to minimize currency risk. Written for the financial market novice, the book explains the nature and uses of a variety of financial instruments without complicated mathematical equations. Discussed in detail are all forms of currency derivatives, such as forward foreign exchange, OTC currency options, currency swaps, currency futures, and options which are illustrated with international examples and case studies. A practical guide on every aspect of currency risk, Managing Currency Risk also serves as a guide to navigating your firm through turbulent economic times.
Categories: Business & Economics

FX Derivatives Trader School

FX Derivatives Trader School

An essential guide to real-world derivatives trading FX Derivatives Trader School is the definitive guide to the technical and practical knowledge required for successful foreign exchange derivatives trading.

Author: Giles Jewitt

Publisher: John Wiley & Sons

ISBN: 9781118967454

Category: Business & Economics

Page: 624

View: 812

An essential guide to real-world derivatives trading FX Derivatives Trader School is the definitive guide to the technical and practical knowledge required for successful foreign exchange derivatives trading. Accessible in style and comprehensive in coverage, the book guides the reader through both basic and advanced derivative pricing and risk management topics. The basics of financial markets and trading are covered, plus practical derivatives mathematics is introduced with reference to real-world trading and risk management. Derivative contracts are covered in detail from a trader's perspective using risk profiles and pricing under different derivative models. Analysis is approached generically to enable new products to be understood by breaking the risk into fundamental building blocks. To assist with learning, the book also contains Excel practicals which will deepen understanding and help build useful skills. The book covers of a wide variety of topics, including: Derivative exposures within risk management Volatility surface construction Implied volatility and correlation risk Practical tips for students on trading internships and junior traders Market analysis techniques FX derivatives trading requires mathematical aptitude, risk management skill, and the ability to work quickly and accurately under pressure. There is a tremendous gap between option pricing formulas and the knowledge required to be a successful derivatives trader. FX Derivatives Trader School is unique in bridging that gap.
Categories: Business & Economics

Financial Institutions Management

Financial Institutions Management

FI to manage ( or hedge ) its interest rate , foreign exchange ( FX ) , and credit risk
exposures and even its exposure to catastrophes such as hurricanes . Table 24 –
1 lists the derivative contract holdings of all commercial banks , and ...

Author: Anthony Saunders

Publisher: McGraw-Hill College

ISBN: 007303259X

Category: Business & Economics

Page: 742

View: 914

Focuses on the risks faced by managers of financial institutions and the methods and markets through which these risks are managed. Pertinent information regarding non-bank financial institutions provides a more holistic view of the challenges raised by factors such as interest rates.
Categories: Business & Economics

Derivatives

Derivatives

he book's title is Derivatives: Markets, Valuation, and Risk Management. In a
nutshell, that is what it intends to provide—an understanding of derivatives
markets, derivatives valuation, and risk management using derivative contracts.
The first ...

Author: Robert E. Whaley

Publisher: John Wiley & Sons

ISBN: 9780470086384

Category: Business & Economics

Page: 960

View: 897

Robert Whaley has more than twenty-five years of experience in the world of finance, and with this book he shares his hard-won knowledge in the field of derivatives with you. Divided into ten information-packed parts, Derivatives shows you how this financial tool can be used in practice to create risk management, valuation, and investment solutions that are appropriate for a variety of market situations.
Categories: Business & Economics

Financial Management

Financial Management

CHAPTER 28 Derivatives : Managing Financial Risk Learning Objectives 1. ...
Derivative instruments are defined by the SecuriDerivatives ties Contracts (
Regulation ) Act to include ( 1 ) a security derived from a debt instruare
instruments ment ...

Author: Khan & Jain

Publisher: Tata McGraw-Hill Education

ISBN: 0070656142

Category: Corporations

Page:

View: 772

Categories: Corporations

Energy Markets

Energy Markets

This book should be on every energy trader, risk manager and corporate planer's desk. it is an easy read as Tom goes into great detail to explain the intricacies of this market and its various unique elements.

Author: Tom James

Publisher: John Wiley & Sons

ISBN: 9781118580479

Category: Business & Economics

Page: 250

View: 678

Price Risk Management and Trading. Energy risk management expert, Tom James, does it again. His latestbook is a timely addition to the rapidly developing energy tradingmarkets. This book should be on every energy trader, risk managerand corporate planer's desk. it is an easy read as Tom goes intogreat detail to explain the intricacies of this market and itsvarious unique elements. - Peter C. Fusaro, Chairman, Global ChangeAssociates Inc., Best-selling Author and Energy Expert This sensible and practical guide is essential for those seeking anunderstanding of commerce in energy derivatives. beyond merelyinformative, this hand book for the practitioner details the finerpoints of the use of derivatives as tools for price-riskmanagement. No energy trading desk should be without it. - Ethan L.Cohen, Senior Director, Utility and Energy Technology, UtiliPointInternational Inc. Energy markets are much more volatile than other commodity markets,so risk mitigation is more of a concern. Energy prices, forexample, can be affected by weather, geopo9litical turmoil, changesin tax and legal systems, OPEC decisions, analysis' reports,transportation issues, and supply and demand - to name just a fewfactors. Tom James's book is a practical guide to assessing andmanaging these risks. It is a must-read for senior management aswell as risk and financial professionals.- Don Stowers, Editor, Oil& Gas Financial Journal This book is the most comprehensive on price riskmanagement-centric efforts. It provides the reader with a tangibleexperience of derivatives in today's capital and energy markets.The breadth and scope of the passages are immense, in that bothdeveloped and developing countries' energy markets are consideredand examples applied. Terrific read! - Rashpal Bhatti, MarketingManager, Energy Trading Asia, Enron/BHP Billiton Tom James has simplified the intricacies of a very complex market.In this new market of "hot" commodities, he has been able to give afresh course to those who are new to the energy markets and a solidreview for those that are well seasoned. he covers everythingwithin the oil market from A to Z in this book and does it well.Coming from a financial background myself, it's good to finallyfind a book that can bring a better understanding to the field ofenergy commodities. - Carl Larry, Vice President Citi Energy GlobalCommodities
Categories: Business & Economics

Derivatives Today

Derivatives Today

( November 1 , 1993 ) For example , the Federal Home Loan Mortgage
Association ( Fannie Mae ) makes significant use of derivatives contracts in
managing the interest rate risk it faces as a result of committing to purchase
mortgages , and as ...

Author: Charles M. Seeger

Publisher:

ISBN: STANFORD:36105062070193

Category: Derivative securities

Page: 99

View: 282

Categories: Derivative securities

Derivative Securities and Risk Management in Asia and Australia

Derivative Securities and Risk Management in Asia and Australia

In managing risk , businesses use financial instruments such as derivatives to
modify the uncertainty of future cash flows . ... A derivative product is one whose
value depends on the underlying asset on which the derivative contract is written
.

Author: Sundaram Janakiramanan

Publisher:

ISBN: UCSD:31822034576124

Category: Derivative securities

Page: 448

View: 346

Categories: Derivative securities

An Introduction to Derivatives and Risk Management

An Introduction to Derivatives and Risk Management

Equity forward ( 14 ) A forward contract in which the payoff is based on a stock or
stock index . Exchange for physicals ( 8 ) A method of delivery on a futures
contract in which the long and short agree to delivery terms different from those ...

Author: Don M. Chance

Publisher: South-Western Pub

ISBN: UCBK:C091178813

Category: Business & Economics

Page: 653

View: 893

Detailed but flexible coverage of options, futures, forwards, swaps, and risk management ? as well as a solid introduction to pricing, trading, and strategy - allows instructors to selectively tailor inclusion of topics/chapters to fit the length of the course. Detailed but flexible coverage of options, futures, forwards, swaps, and risk management ? as well as a solid introduction to pricing, trading, and strategy - allows instructors to selectively tailor inclusion of topics/chapters to fit the length of the course.
Categories: Business & Economics

All About Derivatives Second Edition

All About Derivatives Second Edition

This second edition of All About Derivatives provides a rock-solid foundation on: The most common contracts available to you in today's market Key concepts such as cost of carry, settlement, valuation, and payoff Proven methods for ...

Author: Michael Durbin

Publisher: McGraw Hill Professional

ISBN: 0071743529

Category: Business & Economics

Page: 272

View: 148

EVERYTHING YOU NEED TO KNOW ABOUT DERIVATIVES All About Derivatives, Second Edition, presents the complex subject of financial derivatives with a clarity and coherence you won’t find in other books. Using real-world examples and simple language, it lucidly illustrates what derivatives are and why they are so powerful. This second edition of All About Derivatives provides a rock-solid foundation on: The most common contracts available to you in today's market Key concepts such as cost of carry, settlement, valuation, and payoff Proven methods for establishing fair value How leverage can work for you--and against you The various derivative contracts traded today, including forwards, futures, swaps, and options Pricing methods and mathematics for determining fair value Hedging strategies for managing and reducing different types of risk INCLUDES A BRAND-NEW CHAPTER ON THE ROLE DERIVATIVES PLAYED IN THE 2008 FINANCIAL MELTDOWN
Categories: Business & Economics