Options — a
type of financial derivative used by traders — which have an underlying asset listed in Europe will fall under the legislation and any stocks that have a separate listing in Europe will again be subject to the new rules.
In an effort to further my grasp
of financial derivatives available for speculation and losing money, I realize I need further understanding of how «high - yield corporate», aka junk bond ETF's, «work»...
«The fundamental idea is to perform a change — a reform if you want — of the business
model of financial derivatives to exploit in the best way the technology of the blockchain to get derivatives which are more transparent, which are more secure.»
The ready
availability of financial derivatives such as swaps, options, futures and forwards, and a variety of sophisticated financial techniques, including various forms of structured finance, have made it possible to craft financing solutions that meet ever - more precise corporate needs and investor demands.
It has become the normative
equivalent of financial derivatives: A mysterious term that ostensibly helps manage risk, but has itself become the risk because we don't know what it is we are authorising.
For instance, it may serve as a reference rate in the
settlement of financial derivatives based on the bitcoin price, or in the net asset value (NAV) calculation of exchange traded funds (ETFs).
«The fundamental idea is to perform a change — a reform if you want — of the business
model of financial derivatives to exploit in the best way the technology of the blockchain to get derivatives which are more transparent, which are more secure,» the paper said.