Roll NO.

NAME
11-6311 Sonam Chakor
11-6312 Abhishek Chaubey
11-6313 Mayur Chavan
11-6314 Ankita Dalvi
11-6315 Pratiksha Dalvi
UNDER THE GUIDANCE OF OMKAR DATAR
Introduction

Concept of derivatives

Definition
Underlying assets

Delivery

Speculative

Settlement
First commodity futures exchange in Mumbai was set
up in 1875.
Clearing house was set up in 1918.
Oilseeds futures market was establish in 1900.
Wheat futures market began in hapur in 1913.
Bullion futures market in Mumbai in 1920.
Derivatives are not new to India in various mkts
including equities markets.
FEATURES
Tailor-made

Bear a Risk

Difficult to cancel

Not traded on exchange

Contracted underlying asset
FEATURES
Standardized for Date

Trade through Organized exchanges

Buyer & seller would not know each other

Hedge the Risk

More speculative

contractual agreements between 2 parties

exchange a stream of cash

based upon certain agreed-upon parameters

Price fluctuations.

Interest rate swaps

Currency swaps

Commodity swaps

Equity Swaps

derivative financial instrument

contract between two parties

future transaction on an asset

at a reference price
Exchange-traded options

Over-the-counter

Employee stock options

real estate options

prepayment options
Risk Mitigation

Easy in Trading

Investment

Money Flows

Equilibrium
Enhanced Risk Speculation

Market Movements

Time Settlement

Hot Money

Accounting Ambiguities
EUREX:- Eurex is a future & option exchange & is
jointly operated by Deutsche Bores AG & SWX
Exchange. The exchange is the market place of
choice for trading & clearing of derivatives.

EURONEXT:- Euronext provide international services for
regulated Cash Market & Derivatives Market in Belgium,
France, the UK (derivatives), the Netherlands & Portugal.
Euronext was formed in 2000 in response to the globalization
of capital market & to create a pan-European exchanges.

LME:- The London Metal Exchange is the worlds premier
non-ferrous metals market with highly liquid contracts &
worldwide reputation. Its turnover in 2005 is in excess of US
$4,500 billion.


CBOT:- The Chicago Board of Trade (CBOT), established in
1848, is a leading future & option exchange. More than 3,600
CBOT members trade 50 different futures & option product at
the exchange through open auction &/or electronically.


CME:- Chicago Mercantile Exchange is the largest future
exchange in the United State & also owns & operates the
largest future Clearing House in the world. CME products fall
into five major areas: interest rates, equities, agricultural
commodities & alternatives investment.

NASDAQ:- NASDAQ is the largest US electronic stock
market. With approximately 3200 companies, it listed more
companies &, on average, trade more shares per day than any
other US market.