Mastering derivatives markets : a step-by-step guide to the products, applications and risks / Francesca Taylor.

Format:

Book

Author/Creator:

Taylor, Francesca, author.

Language:

English

Subjects (All):

Derivative securities.

Physical Description:

1 online resource (xviii, 406 p.) : ill.

Edition:

Fourth edition.

Place of Publication:

Harlow : Pearson Education Limited, 2012.

Language Note:

English

System Details:

text file

Summary:

"The first port of call for anyone looking to truly understand derivatives markets, appreciate the role they play within the global financial system and develop the technical knowledge to trade." Matthew Thompson, Chief Strategy & Business Development Officer, Dubai Mercantile Exchange "An essential read for anyone serious about understanding the impact of derivatives and technology on the global financial market." Kevin Thorogood, Global Head, Investment Banking/Energy Trading, Thunderhead Ltd "We have used Francesca for training on derivatives in the past. She demonstrates a passion for these markets and for learning. In a fast changing world, the combination of technical learning and practical experience that Francesca applies is helpful in keeping abreast of market developments." Rachael Hoey, Director, Business Development, CLS YOUR ESSENTIAL COMPANION TO THE DERIVATIVES MARKETS Mastering Derivatives Markets provides full up-to-the-minute explanations — with worked examples and screen shots — covering the basics of options, swaps and futures across the key asset classes: rates, currency, equity, commodity and credit. This book is relevant to anyone working within the financial markets, from the new entrant to the seasoned trader looking for updates, and to non-trading personnel working in IT, legal, compliance, risk, credit and operations. Please note that the 'look inside' feature is currently displaying the content of Mastering Derivatives Markets Third Edition, this will be updated soon. Mastering Derivatives Markets Fourth Edition has been completely revised and features new chapters on: The most up to date thinking in the market OTC clearing Regulation Benchmarking Electronic futures trading in the FX market New insights into the commodities markets Carbon trading and environmental products

Contents:

Cover

Mastering Derivatives Markets

The author

Contents

Author's acknowledgements

Publisher's acknowledgements

Foreword

Contributors

Background and Development of the Derivatives Markets

Market background

Introduction

Key features

Uses of derivatives

Range of derivatives

Increasing use of the Central Counterparty Model (CCP)

Risk and benchmarking

Market volume

Users and uses of derivatives markets

Straight Through Processing (STP)

Market Fundamentals

How banks generate income

Three key assumptions

Role and use of LIBOR

Day counts

Financial maths

Calculating forward rates

Marking to market (MTM or M2M)

Yield curves

Quiz

Risk - a Primer

Financial risks: market, credit, liquidity

Operational risk

More esoteric risks

Derivatives Fundamentals

What is a vanilla trade?

Settlement

Triggers

Liquidity and credit risk

Understanding the 'underlying'

Benchmarks

Fair value

Dealing with derivatives

Basic Option Concepts

Option pricing

Option mechanics

Interest Rate Derivatives - Single Settlement Instruments

Single settlement interest rate derivatives

Financial futures contracts

Forward rate agreements (FRAS)

Interest rate options (IROS)

Interest Rate Derivatives - OTC Multiple Settlement Instruments

Interest rate caps and floors

Interest rate collars

Interest rate swaps

Benchmarking in the OTC Derivatives Markets

Financial benchmarking for derivatives

Liquidity benchmarking for derivatives

Operational risk measurements for derivatives

Conclusion

Currency Derivatives

Over the counter currency options

Currency options: reduced premium strategies.

Simple exotic structures

Currency swaps

Exchange-traded instruments

The Impact of Electronic Trading on the FX Market

The early years

FX as part of a commodity portfolio

First electronic dealing platforms

Electronic market making

Phases I and II

Point and click vs algo traders

The impact of the credit crisis on banks' FX trading

Phase III

Credit Derivatives

What is credit risk?

Styles of trading

The first deals

Range of credit derivatives

Credit default swaps

Central Clearing and the OTC Market

The basics

Trade execution

Risks and mitigation

Getting trades into clearing

The business case and benefits

Predictions for market development

Terminology

Equity Derivatives

Background

Single stocks or equity indices?

Stock index futures

Stock index options

Single stock options

Equity index swaps

Commodity Derivatives

Exchange-traded energy derivatives

Exchange-traded futures contracts

Exchange-traded energy option contracts

OTC or 'off-exchange' energy derivatives

OTC option products

OTC oil swaps

Carbon Derivatives and Environmental Products

What are carbon markets?

Volumes and value

Overview of regulation

Carbon instruments

What drives carbon prices?

Trading carbon: in practice

Regulation in the Derivatives Markets

Why regulate the derivatives markets?

Who regulates the derivatives markets?

Regulatory models and objectives

Supervisory aims - equal access to markets

Market integrity

Market abuse and manipulation

The role of market surveillance

Efficient markets

Continuing regulatory challenges

Glossary

Answers to Quizzes

Index.

Notes:

Includes index.

Includes bibliographical references and index.

Description based on print version record.

Description based on online resource; title from title page (EBook Central, viewed April 3, 2025).

Description based on online resource; title from PDF title page (EBC, viewed May 02, 2023).

ISBN:

9786613056009

9781283056007

1283056003

9780273735687

0273735683

OCLC:

1015869522