The global derivatives trend in 2008

Abstract

The global crisis put under question the economical theories about capital markets. Financial derivatives create problems for the legal context of these markets as well as for the way in which such financial instruments can be controlled by the final user. A derivative product may be an instrument of covering the inevitable risks from any economic activity, or may be a perfect instrument adapted to speculation. Duality is even greater as it cannot be a hedger without a speculator. The investors with high risk appetite meet the investors with risk aversion. In order to have a correct environment on the derivatives markets, regulations should establish the market rules, who should participate, how and when new instruments should appear.global crisis, capital markets, risks