Thursday, April 21, 2016

Use of derivatives for speculation, not hedging

American regulators refuse to challenge the financial-services industry’s claim that derivatives are used primarily for legitimate hedging and arbitrage. In truth, as the 2009 report by the U.K.’s FSA concluded, derivatives trading is mainly used for speculation, meaning creating risk and leverage.

Read more: http://www.politico.com/magazine/story/2016/04/new-york-primary-financial-crisis-wall-street-213822#ixzz46USuxhPO 
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