Derivative: Difference between revisions

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+Where do you start?
+MiFID definition of derivatives comes from the latter half (items (4) - (10)) of the definition of "Financial Instruments" set out in Section C of Annex I to {{tag|MiFID}} as follows:
+{{box|
+Financial Instruments
+(1) [[Transferable securities]]; <br>
+(2) [[Money-market instrument]]s; <br>
+(3) Units in collective investment undertakings [AKA {{tag|UCITS}};  <br>
+(4) [[Option]]s, [[future]]s, [[swap]]s, [[forward rate agreement]]s and any other [[derivative contract]]s relating to securities, currencies, interest rates or yields, or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash;  <br>
+(5) [[Option]]s, [[future]]s, [[swap]]s, [[forward rate agreement]]s and any other [[derivative contract]]s relating to [[commodities]] that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event); <br>
+(6) [[Option]]s, [[future]]s, [[swap]]s and any other [[derivative contract]] relating to [[commodities]] that can be physically settled provided that they are traded on a regulated market and/or an MTF; <br>
+(7) [[Option]]s, [[future]]s, [[swap]]s, [[forward]]s and any other [[derivative contract]]s  relating to [[commodities]], that can be physically settled not otherwise mentioned in C.6 and not being for commercial purposes, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are cleared and settled through recognised clearing houses or are subject to regular margin calls;
+(8) [[credit derivatives|Derivative instruments for the transfer of credit risk]]; <br>
+(9) Financial [[contracts for differences]]; <br>
+(10) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event), as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market or an MTF, are cleared and settled through recognised clearing houses or are subject to regular margin calls. <br>
+}}
+{{anat|MiFID}}
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