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Roll NO. NAME

11-6311 Sonam Chakor11-6312 Abhishek Chaubey

11-6313 Mayur Chavan

11-6314 Ankita Dalvi

11-6315 Pratiksha Dalvi

UNDER THE GUIDANCE OF OMKAR DATAR

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Introduction

Concept of derivatives

Definition

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Underlying assets

Delivery

Speculative

Settlement

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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.

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FEATURES Tailor-made

Bear a Risk

Difficult to cancel

Not traded on exchange

Contracted underlying asset

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FEATURES Standardized for Date

Trade through Organized exchanges

Buyer & seller would not know each other

Hedge the Risk

More speculative

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contractual agreements between 2 parties

exchange a stream of cash

based upon certain agreed-upon parameters

Price fluctuations.

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Interest rate swaps

Currency swaps

Commodity swaps

Equity Swaps

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derivative financial instrument

contract between two parties

future transaction on an asset

at a reference price

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Exchange-traded options

Over-the-counter

Employee stock options

real estate options

prepayment options

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Risk Mitigation

Easy in Trading

Investment

Money Flows

Equilibrium

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Enhanced Risk Speculation

Market Movements

Time Settlement

Hot Money

Accounting Ambiguities

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EUREX:-

Eurex is a future & option exchange & isjointly operated by Deutsche Bores AG & SWXExchange. The exchange is the market place ofchoice 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 globalizationof capital market & to create a pan-European exchanges.

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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 in1848, is a leading future & option exchange. More than 3,600CBOT members trade 50 different futures & option product atthe exchange through open auction &/or electronically.

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CME:- Chicago Mercantile Exchange is the largest future

exchange in the United State & also owns & operates thelargest 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.

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