Derivative: Difference between revisions

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==Skeleton==
{{def|Derivative|/dɪˈrɪvətɪv/|n|{{subtable|{{financial instruments}}}}}}
A [[financial instrument]], feared in Nebraska as some kind of [[Financial weapons of mass destruction|WMD]], in the cradle of the Levant as a sort of Godless gambling contract, amongst commodity producers of the Midwest (other than that one fellow in Omaha) as a legitimate [[hedging]] activity, and for legions of patient [[negotiator|negotiators]] in London, New York, Hong Kong and the thriving satellite constellation of low-cost jurisdictions from Bangalore to Nashville, a steady, dreary, unglamorous means of keeping home fires stoked and food upon the table.


Could be a [[swap]]<ref>Also, fondly, known as a [[sw-ŏp]], but ''never'' a [[sw-æp]]. [[Swap does not rhyme with crap|Swaps aren’t, and don’t rhyme with, crap]].</ref>, an [[option]] or a [[future]].


=== By Format===
Not, and especially not now, in light of the fabulous parallel regulation of the [[Securities Financing Transactions Regulation]], a [[stock loan]] or a [[repo]].
====[[Securities]]====
*[[Debt Capital Markets]]
**[[Medium Term Note]] Programmes
**Stand Alone [[Eurobond]] Issuance
*[[Structured Securities]]
**Structured [[Medium Term Note]]s
**Repackagings and Securitisation


====[[OTC]]====
==Warning: boring stuff below this line==
*{{isdama}}
Where do you start?
====[[Exchange Traded]]====
:{{derivativecontractdefinition}}


===By Master Agreement===
:{{tag|MiFID}} definition of [[derivative]] comes from the latter half (items (4) - (10)) of the definition of “[[Financial instrument - FCA Rulebook Term|Financial Instruments]]” set out in Section C of Annex I to {{tag|MiFID}} as follows:
====Derivatives====
*{{isdama}}
*[[European Master Agreement]]
*Domestic european master agreements
**[[Deutsche Rahmenvertrag]] (German Master Agreement)
**[[FBF]] (French Master Agreement)
**[[CMOF]] (Spanish Master Agreement)
====Securities Financing====
=====Stock Lending====
*[[Global Master Securities Lending Agreement]] (GMSLA)
*[[Master Securities Lending Agreement]] (MSLA)
*[[Legacy Stock Lending Agreements]]
=====Repurchase Agreements=====
*Global Master Repurchase Agreement (GMRA)
*Master Repurchase Agreement (MRA)


===By Asset Class===
*[[Equity Derivatives]]
*[[Credit Derivatives]]
*[[Currency Derivatives]]
*[[Interest Rate Derivatives]]
*[[Commodity Derivatives]]


===By Activity===
{{sa}}
====Market Risk====
*[[FWMD Top Trumps]]
====Credit Risk====
 
====Regulatory Environment====
{{ref}}
Implications for derivatives and capital markets transactions of regulatory initiatives.
=====Regulatory Initiatives=====
This should cross reference where appropriate the Financial Services Module
''Supervision and Market Infrasdtructure''
*[[Dodd Frank]]
*[[European Market Infrastructure Regulation]] (EMIR)
Investor Protection''
*[[MiFID]]
*[[Prospecus Directive/PRIPS]]
''Capital, Liquidity and Financial Stability''
*[[Capital Requirements Directive]] (CRD4)
*[[Basel III]]
=====Netting=====
=====Clearing=====
=====Suitability=====