Economic Quarterly

1995

 

Fall 1995

Derivatives Debacles: Case Studies of Large Losses in Derivatives Markets

Anatoli Kuprianov

Numerous accounts of derivatives-related losses experienced by established and reputable firms have raised concerns over the rapid growth of derivatives markets. Two of the largest derivatives-related losses to date involved Metallgesellschaft AG of Germany and Barings PLC of England, which both lost over $1 billion. Such incidents often lead to demands for stricter regulation. But a careful study of these incidents suggests no need for sweeping regulatory reform. It does suggest a need for greater international cooperation among regulators, however.

Contact Us

Richmond

Amanda L. Kramer
(804) 697-8606

Publications image
Get Our Free Publications

To receive a notification by email when Economic Quarterly is posted online or to order single copies of past issues, click on the links below (published online only since 2012).