Skip to Main Content

Economic Quarterly

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.

Subscribe to Economic Quarterly

Receive an email notification when Economic Quarterly is posted online:

Subscribe to Economic Quarterly

By submitting this form you agree to the Bank's Terms & Conditions and Privacy Notice.

Phone Icon Contact Us
Lisa Davis (804) 697-8179