Currency Derivatives
58 white papers and resources
Risk Library offers a wide range of currency derivatives white paper, industry report and legal briefings which consider current issues, thinking and market conditions. A currency derivative is a legally binding agreement between two parties which gives the investor the right to buy or sell currency at a set price or exchange rate for a period of time in the future date.
Future Trends in Optimisation Collateral, Regulatory Capital & CCP Selection
Financial firms are currently experiencing significant regulatory and cost pressures. This is leading to a search for ways to optimize various aspects of trade types that involve some level of counterparty credit risk (derivatives, securities lending, repo). This paper looks at the different types…
The Benefits of Volatility Derivatives in Equity Portfolio Management
This research was produced as part of "The Benefits of Volatility Derivatives in Equity Portfolio Management" strategic research project at EDHEC-Risk Institute, in partnership with Eurex.
Hybrids: Diversifying by unifying
Volatility is emerging as the norm for markets as analysts debate the interdependence of emerging markets and developed economies. Investors and risk managers who can gauge correlation between multiple asset classes correctly and unify them through hybrid products will find they are best prepared…
Currency Overlay
The much-elevated volatility level of the foreign exchange spot prices and a near-seizure of the foreign exchange forward and swap market at the height of the global financial crisis seem a distant memory for some, but many investors may be feeling distinctly uneasy about the currency risk in their…
Regulating the renminbi
The last decade has seen a relaxation of rules regarding RMB services. DBS Bank’s senior vice president and head of complex hybrid products, Anthony Cheng, guides us through the regulatory history of RMB business across Asia and outlines investment opportunities.
Shipping freight derivatives - theory and practice
As an inherently volatile industry, shipping is characterised by a high risk-high return profile, making its rates and prices difficult to forecast, and as a consequence business projects less accurately budgeted. The identification and management of any such business risks is imperative.
The rise of multi-currency options
Adrian Campbell-Smith (RBS Currency Options Trading) and Ben Hamdani (RBS Currency Structuring) examine the realm of multi-currency options and explain some of the reasons behind their increasing popularity.
Finding Safe Harbour
As regional banks cautiously develop currency markets and sovereign risk threatens global market stability, Société Générale explains why going back to basics is a sound strategy.