What is an OTC Derivative

What Is An OTC Derivative?

http://derivativedribble.wordpress.com/2009/2009/05/18/how-npr-mangled-geithners-plan-for-otc-derivatives/

derivative is a contract that derives its value by reference to “something else.” That something else can be pretty much anything that can be objectively observed and measured. That said, when people talk about derivatives, the “something e…

Would security futures products be eligible OTC derivative instru…?

http://www.sec.gov/rules/interp/33-8107.htm

No. Exchange Act Rule 3b-13(b)(2)(i) defines an eligible OTC derivative instrument, and specifically excludes from the definition of eligible OTC derivative instrument a security that is listed or traded on a securities exchange. Security…

How do privately negotiated (OTC) derivatives differ from futures…?

http://www.isda.org/educat/faqs.html

First, the terms of a futures contract—including delivery places and dates, volume, technical specifications, and trading and credit procedures—are standardized for each type of contract. For swaps, the same characteristics are subject to n…

Related Questions Answered on Y!Answers

How would an economist under the Austrian school of thought/Libertarian respond?

Q: What would be a typical response for economists under the Austrian school of thought regardingEnron (creative accounting/earnings management ), Bernie Madoff (Ponzi Scheme), and risky OTC derivatives. I mean would one argue for or against government regulation in these areas in order to prevent them? Would they approach it in a way similar to what a typical Keynesian might do (i.e. more regulation/government imposed fiscal loan (bailout), etc.) or not?

A: First off, there would be zero chance of any bailouts for ANY company, so companies engaged in risky behavior would not have incentive to overdo it and then ask the government for loans/bailouts.Second, supposedly there was at least some “government regulation” in place during all these crises. Obviously it failed and every time more regulations are passed, it benefits the larger corporations who can find “loopholes” and be less damaged by them compared to smaller firms. What do you think the SEC does or should have been doing, they knew about Madoff for quite awhile…In a nutshell, prosecute for fraud and damages that must be paid back, no bailouts period.

What would you do if you were Ben Bernanke,and when would you do it?

Q: Let’s consider this question as if: 1.You are an administration company man. 2.You know the implications of the Bernanke Helicopter Money Drop. 3.You understand the fragile nature of the OTC derivative glut. 4.You know your obligations as mid-term elections require a healthy equities market.

A: Or you could consider that the Fed is relatively independent of petty politics with their 14 year terms. Greenspan served under both parties. Bernanke hasn’t been around long enough to establish much of a record, but Greenspan did seem a little better.He’ll probably continue raising rates and tanking the stock market with his speeches because that’s the thing to do right now with inflation at a relatively high rate.

Does anyone has info on OTC derivatives?

Q: Does anyone know where I can find information about the OTC derivatives market??? such as, what are they, volume of trade, definitions, etc.I need information for a research paper on the OTC derivatives market, not information about prices.Please help…

A: OTC means , you are buying something directly from the buyer without the middleman.Stcocks are called NON-OTC because stock exchange acts like a middle man for buying you something.Secondly, Forex, Bond market ,swap market and some of the options market (like Forex options) etc… are traded over the counter (OTC).If you need to know more about something particular, you can email me.My email is [email protected].