The intrinsic complexity of the financial derivatives market has emerged as both an incentive to engage in it, and a key source of its inherent instability. Regulators now faced with the challenge of ...

What are derivatives (and why are they called that)? A derivative is a contract that derives its value and risk from a particular security (like a stock or commodity)—hence the name derivative.

CHICAGO - When it comes to choosing derivative instruments, some portfolio managers still think the more complicated they are, the better. But as the stock markets become increasingly volatile and ...