Anda di halaman 1dari 4

Ashutosh Vashishtha (2010), has described the concept of risk as characteristic feature of most

commodity and capital markets. The research paper as described by the author states the definition of derivatives as a broad class of financial instruments which mainly include options and futures. Definition of financial derivatives have also been explained in the research paper. The researcher described the derivatives contract as an underlying assets, the various participations in derivative market (Hedgers, Speculators & Arbitrators), application of financial derivatives (Management of risk, Efficiency in trading, Speculation, Price discover & Price stabilization function). Classification of derivatives as Forward, Future, SWAPS & Options. The paper also highlights the history of Derivatives Market in India supported by technical data. Finally the growth of Derivatives Market in India compared to the Global Derivatives Market compared by the researcher. The researcher has concluded that innovation of derivatives have redefined and revolutionised the landscape of financial industry across the world and derivatives have earned a well deserved and extremely significant place among all the financial products. According to their study the equity Derivative market is playing a major role & had good prospects.
Ashutosh Vashishtha (2010), " Development of Financial Derivatives Market in India- A Case

Study" International Research Journal of Finance and Economics. The debate over risks and regulation in derivatives markets has failed to provide a clear analysis in the research the researcher has used the parametric model to analyze default risk in derivative contracts. The researcher also intricate what kind of risk like Default Risk, Counterparty Risk, Liquidity/Funding Risk, Operation Risk, Systematic Risk. In that research the researcher analysis the risk associates with derivatives transaction and impact of regulation limiting these. The researcher only focuses in Price risk, Default risk, Agency risk & Systematic risk. According to their study the systematic risk and default risk are major problem in derivatives market and many firm are facing the same risk which will not be diversify so many firms are exposing Agency risk.
Ludger Hentschel (1995) Ludger Hentschel (1995)

Hiren M Maniar and Dharmesh M Maniyar( )," Impact of Option Interest Information in Derivatives Markets- An Empirical study of Stock Options market, NSE (National Stock Exchange of India)" The researchers examine the role of options market open interest in conveying information about future movement of underlying assets. The researcher find out the investigation of options effect on stock price behavior at two points (like option listing and option expiration). These study scan that the information content of the distribution of options open interest. It uses the discrete distribution of equity option open interest across various strike prices as a proxy for the true or physical distribution of the stock price at option maturity. This paper finds the prediction of stock price movement based on the distribution of options open interest to have reasonably good accuracy. these simpler trading strategies seem to indicate a high information content of derivatives market activity, it is expected that the information content will be even greater once more complex strategies based on the prediction of direction as well as volatility are entertained. These paper shows one clear advantage of using derivatives market activity instead of prices to

impart information. This studies information implied from the derivative prices is about the riskneutral distribution of the underlying asset. Anonymous, 2009, "Derivatives Markets In India" Anonymous (2009) are also introduce and defined that what is derivative (Securities, Commodities, Bullion, Currency, Live stock,), they identify in a different way like Derivative means a forward, future, option or any other hybrid contract of pre determined fixed duration, linked for the purpose of contract fulfillment to the value of a specified real or financial asset or to an index of securities. The journalist has integrate the Structure of Derivative Markets, Derivatives in Indian capital market, Economic functions of a derivatives market (It helps in transferring risks from risk adverse people to risk oriented people, It helps in the discovery of future as well as current prices, It catalyze industrial activity, It increase the volume traded in markets because of participation of risk averse, People in greater numbers, It increase savings and investment in the long run). The participants in a derivative market are (Hedgers, Speculators, Arbitragers ). Finally the author also illustrate same types of Derivatives (like Forwards, Futures, Options ''Call/Put'', Warrants, LEAPS, Baskets, swaps and Swaptions.. The author describes additional derivatives (i.e.LEAPS, Baskets,SWAP Swaptions) a) LEAPS means Long-Term Equity Anticipation Securities. These are options having a maturity of up to three years.', b) Baskets options are options on portfolios of underlying assets. The underlying asset is usually a moving average or a basket of assets. Equity index options are a form of basket options, c) Swaps i) Interest rate swaps ii) Currency swaps and d) Swaptions are options to buy or sell a swap that will become operative at the expiry of the options.

Regulators Finalize New Derivatives Rules

In the article that the central regulator of USA on July, 2011 in the first series of new rules for the derivatives market, giving the government broad new authority over the $600 trillion industry that played a central role in the financial crisis. The rules, approved generally by the Commodity Futures Trading Commission, greatly expand the governments ability to police insider trading and other fraud. The plan, regulators say, injects new life into the commissions often hamstrung enforcement efforts. The commission's Chairman Mr. Gery Gensler said at the public meeting in Washington for effective enforcement program and also discuss about how to use these tools to be more effective cop on the beat, to promote, Market integrity and to protect market participants. In the same day discuss about the commission of hedge fund and approve five rules altogether, a critical step in the push to overall Wall Street regulation in the result of crisis. Most of the agency is not satisfied and not support while Mr. Gensler plans to complete the remaining proposal by the end of this year. One rule allows the agency to survey the swaps market, a type of derivative contract that previously was off limits. Under the proposal, hedge funds, energy firms and other large players in the market must turn over daily reports detailing an arrangement of private data, including their stakes in swaps and records of their trades. .

The Journal of Derivatives

Anonymous (The Journal of Derivatives):

Anonymous says in the article includes topic specifically related to derivatives instrument and market, and also a board range of related areas, such as risk management and models of assets price processer. The main goal of author is interface between practitioners and academics and between theory and practice in the derivatives securities market, they state that if anyone are investing in derivatives assets then they should relatively high level of mathematical analysis to which derivative assets is acceptable but the different analysis tools is used upon the different characteristic of derivatives assets/materials. The authors are expectant in the areas of: * Valuation and risk assessment models for derivative instruments and securities with derivative features. * Theory and practice of trading in any exchange-traded or OTC derivative product. * Risk management applications of derivatives, and of contingent claims theory. * Empirical studies of behavior of prices and markets for derivatives and for underlying assets. * Regulatory issues (from an economic as opposed to a purely legal perspective). * Application of derivatives concepts to other areas, such as insurance, corporate finance, and banking.

Ahuja L. (2005) has introduces about commodity derivative market and risk management in India. In India (2005, September) has three (3) national level of electric exchange, 21 regional exchange for trading commodities derivatives as many as commodities has been allotted for derivative trading. The author also analysis that the volume o trading of derivative market in India there are $ 5 tertian in a few year. In the article the author has analysis of question such as how did India pull it off in such a short time a) in that program sustainable and what are the obstacles need urgent attention if the market is realize that full potential. b)why the commodity derivatives in important and what could other emerging economies. Each and every question solve by the learning from India market and also find out what is the opportunity and find out what mistake have been done in this market. The author discusses about the Indian Act and regulation, the parliament passed forward contract (Regularities) Act 1952 after independence. This regulated forward contracts in commodities all over India; After all the author questionnaire that why are commodity derivative market? What will be effect in derivative market as change in government as well? In the article the author also analyzes 3-4 exchange of derivatives market and find out some problem some of the main unsolved issue are disclosed with.

Policy perspective on OTC derivative market infrastructure. Damell Daffie, Ada Li, & Theo lubke (2010), the researcher introduce about the Over the counter market that says the country suffering of the financial crisis , and OTC derivatives market have been blamed for increasing systemic risk and the OTC derivative market were not a central cause of the crisis. They find that weakness in infrastructure of derivatives market did

exacerbate the crisis. As a result of risk management, corporate governance and management supervision, some market participants took excessive risk using this instrument. The researcher describe about OTC trading, exchange, and clearing they analysis improvement in the OTC Derivative market, and get same achievement that have been made by market participants in response t regulatory demand to reduce risk and increase market efficiency,they also illustrate about counterparty credit risk,central counterparty clearing , robust collateralization. They find out some problems also