Numerous accounts of derivatives-related losses experienced by established and reputable firms have raised concerns over the rapid growth of derivatives markets. Two of the largest derivatives-related losses to date involved Metallgesellschaft AG of Germany and Barings PLC of England, which both...

Virtually nonexistent a decade ago, the over-the-counter market for interest rate derivatives has grown at a phenomenal pace in recent years to become an increasingly important part of world securities markets. Although these instruments offer firms obvious benefits in managing their cash flows,...

Virtually all financial innovation in the U.S. money market during the past 20 years has centered on interest rate derivatives, including futures and swaps. Furthermore, money market futures--especially futures contracts on Eurodollar time deposits--have been at the vanguard of the recent...