Derivatives Market in the Aftermath of the Lessons Learned from the Crises

From individual investors to corporations and financial firms, derivatives have been used to hedge against, or speculation, changes in prices, rates, indexes, potential defaults on debts. Without any oversight, derivatives market and especially OTC derivatives rapidly became out of control growing to more than $700 trillion in notional amount. The paper’s goal is to analyze the influence derivative market played in this crisis and the main reforms taken to prevent this kind of event for the future.