[OPE] Secret world of derivatives...

From: Jurriaan Bendien <jurriaanbendien@online.nl>
Date: Sun Dec 12 2010 - 16:24:39 EST

The NYT has an interesting article:

According to BIS, daily average foreign exchange market turnover reached $4
trillion in April 2010, 20% higher than in 2007.

Average daily turnover of derivatives in 33 Emerging Market Economies for
which data are available was $1.2 trillion in April 2010 (6.2% of those
economies' GDP), compared to $13.8 trillion (36% of GDP) in advanced
economies. http://www.bis.org/publ/qtrpdf/r_qt1012f.pdf

The outstanding value of total OTC derivatives contracts traded declined
from $672.5 trillion in June 2008 to $582.6 trillion in June 2010

Even if you assume that the actual net profit on derivatives contracts is at
best only a few percent, the total global earnings must run into the
trillions of dollars. That's insurance with a capital "I".


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Received on Sun Dec 12 16:26:16 2010

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