Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users...

15
Financial Derivatives market of Brazil

TAGS:

Transcript of Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users...

Page 1: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Financial Derivatives market of Brazil

Page 2: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

OUTLINE

– Derivative market in Brazil– Derivative users in Brazil– Factors Contributing to the growth of derivatives – Instruments being used in derivative market– Concluding remarks on the derivative market

situation of Brazil– Recommendations

Page 3: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Derivative market in Brazil

• Back in 1970s, futures market traded only in agriculture and mineral commodities.

• In Brazil, BM&F (futures and Commodities exchange) is worth mentioning.

• From BM&F combination with the Sao Paulo stock Exchange(Bovespa), BM&FBOVESPA(Futures, Commodities and Stock Exchange) emerged as the world’s 3rd largest stock exchange.

Page 4: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

• The BM&FBOVESPA(Bosla de Valores, Mercandorias & Futuros de Sao Paulo) is an exchange located at Sao Paulo, Brazil.

Page 5: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Structure of Brazil’s Derivative Markets

• Exchange traded derivatives• Over the counter markets

Page 6: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Derivative Users in Brazil

• Derivative Dealers• Customers or End Users in derivative Markets

Page 7: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Factors Contributing to the growth of derivatives

• Globalization• Technological Advancement• Price Volatility• Advances in Financial theory

Page 8: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Brazil’s Economic Indicators

• High Inflation• High Interest rates• Exchange rate Fluctuations

Page 9: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.
Page 10: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Instruments Used in Brazil Derivative Market

• Forward• Futures• Options Swaps

Page 11: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Types of Contracts

• Forward contracts• Foreign exchange forward• Non-deliveralble forwards• Futures• Options• Flex Options

Page 12: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Analysis of Some Research Findings

Page 13: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Concluding Remarks

Page 14: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Recommendations & Suggestions

• Improve transparency & surveillance of OTC derivative

• Use of new risk management models.• Government policies• Supervision, oversight and regulation of

counter parties• Low trading cost and risk distribution

Page 15: Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.

Thank you


Derivative Securities Law of One Price Payoff Diagrams for common derivatives Valuation of Derivatives Put-Call Parity.

Derivative Securities Law of One Price Payoff Diagrams for common derivatives Valuation of Derivatives Put-Call Parity.

CHAPTER 3: Derivatives - kkuniyuk.com 3: Derivatives 3.1: Derivatives, Tangent Lines, and Rates of Change 3.2: Derivative Functions and Differentiability 3.3: Techniques of Differentiation

CHAPTER 3: Derivatives - kkuniyuk.com 3: Derivatives 3.1: Derivatives, Tangent Lines, and Rates of Change 3.2: Derivative Functions and Differentiability 3.3: Techniques of Differentiation

Calculus Chapter 3 Derivatives. 3.1 Informal definition of derivative.

Calculus Chapter 3 Derivatives. 3.1 Informal definition of derivative.

Deriving Derivatives of Derivative Securities - Sat. 18.02.12

Deriving Derivatives of Derivative Securities - Sat. 18.02.12

Derivatives and Hedging (Topic 815) Effect of Derivative ... Standards Update 2016-05 Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge

Derivatives and Hedging (Topic 815) Effect of Derivative ... Standards Update 2016-05 Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge

Higher-Order Derivatives in Engineering · PDF fileHigher-Order Derivatives in Engineering Applications, ... By applying the chain rule of derivative calculus ... Higher order derivatives

Higher-Order Derivatives in Engineering · PDF fileHigher-Order Derivatives in Engineering Applications, ... By applying the chain rule of derivative calculus ... Higher order derivatives

Introduction About objectivity Covariant derivatives Material time derivative

Introduction About objectivity Covariant derivatives Material time derivative

Approximate Longitudinal Dynamics Models derivatives · Fall 2004 16.333 6–1 More Stability Derivatives • Recall from 6–2 that the derivative stability derivative terms Z w˙

Approximate Longitudinal Dynamics Models derivatives · Fall 2004 16.333 6–1 More Stability Derivatives • Recall from 6–2 that the derivative stability derivative terms Z w˙

Chapter 5: Applications of the Derivative Chapter 4: Derivatives Chapter 5: Applications.

Chapter 5: Applications of the Derivative Chapter 4: Derivatives Chapter 5: Applications.

Derivative Instruments - Freejerome.mathis.free.fr/IEF272/Derivatives/Chapter7_dynamics.pdf · ... “Options, Futures, and Other Derivatives”, Pearson ed. LEDa Chapter 7 ... 7

Derivative Instruments - Freejerome.mathis.free.fr/IEF272/Derivatives/Chapter7_dynamics.pdf · ... “Options, Futures, and Other Derivatives”, Pearson ed. LEDa Chapter 7 ... 7

Use of Debt-Related Derivatives Products Debt-Related Derivatives... · Use of Debt-Related Derivatives Products ... To alert governments to the risks associated with derivative ...

Use of Debt-Related Derivatives Products Debt-Related Derivatives... · Use of Debt-Related Derivatives Products ... To alert governments to the risks associated with derivative ...

Introduction to Freight Derivatives - FONASBA · Introduction to Freight Derivatives FONASBA Annual Meeting October 2016. What is a derivative? • A derivative is a contract that

Introduction to Freight Derivatives - FONASBA · Introduction to Freight Derivatives FONASBA Annual Meeting October 2016. What is a derivative? • A derivative is a contract that

18-1 CHAPTER 18 Derivatives and Risk Management Derivative securities Fundamentals of risk management Using derivatives.

18-1 CHAPTER 18 Derivatives and Risk Management Derivative securities Fundamentals of risk management Using derivatives.

Risk Management Using Derivatives Securities of derivatives are: Options –put and call options, forwards, futures, and swaps 3 Derivative Markets Derivative markets are markets for

Risk Management Using Derivatives Securities of derivatives are: Options –put and call options, forwards, futures, and swaps 3 Derivative Markets Derivative markets are markets for

1 2. Economic Applications of Single- Variable Calculus Derivative Origins Single Variable Derivatives Economic uses of Derivatives.

1 2. Economic Applications of Single- Variable Calculus Derivative Origins Single Variable Derivatives Economic uses of Derivatives.

Workbook for Equity Derivatives Certification · PDF filemember of an equity derivatives exchange or equity derivative ... Equity Derivatives Certification Examination ... allowed

Workbook for Equity Derivatives Certification · PDF filemember of an equity derivatives exchange or equity derivative ... Equity Derivatives Certification Examination ... allowed

Chapter3: Differentiation DERIVATIVES OF TRIGONOMETRIC FUNCTIONS: Chain Rule: Implicit diff. Derivative Product Rule Derivative Quotient RuleDerivative.

Chapter3: Differentiation DERIVATIVES OF TRIGONOMETRIC FUNCTIONS: Chain Rule: Implicit diff. Derivative Product Rule Derivative Quotient RuleDerivative.

Directional derivatives and gradient vectors (Sect. 14.5 ......Directional derivative of functions of two variables. Remark: The directional derivative generalizes the partial derivatives

Directional derivatives and gradient vectors (Sect. 14.5 ......Directional derivative of functions of two variables. Remark: The directional derivative generalizes the partial derivatives

OTC Derivatives reform: Amendments to ASIC Derivative ... · On 9 July 2013, ASIC made the ASIC Derivative Transaction Rules (Reporting) 2013 (derivative transaction rules (reporting))

OTC Derivatives reform: Amendments to ASIC Derivative ... · On 9 July 2013, ASIC made the ASIC Derivative Transaction Rules (Reporting) 2013 (derivative transaction rules (reporting))

Area, perimeter and derivatives of a skin curve · Area, perimeter and derivatives of a skin curve ... measuring the area, the perimeter, the area derivative, and the perimeter derivative

Area, perimeter and derivatives of a skin curve · Area, perimeter and derivatives of a skin curve ... measuring the area, the perimeter, the area derivative, and the perimeter derivative