Equity Derivatives

The world of Equity Derivatives has exploded since the creation of the Derivatives exchange in Amsterdam, then Paris, Frankfurt to add to the one from the US, Chicago being at the origin of all.

It is not just about listed options any more, and billions of dollars of deals are traded everyday under many forms, form Funds, Bonds, Insurance Units, Deposits and other Certificates or Warrants. All Market segments are active users, from Retail to Corporates and of course most institutions.

The major increase in creativity and volume curiously did not come from the US or UK where the Equity Cash culture is old and well established, but mainly from Continental Europe. France in particular contributed widely directly through its Banks, but also indirectly through the numerous Traders, Structurers and Sales who are still populating Trading rooms in New York or London.

The impact on other asset classes was visible after the internet bubbleof 2000, and traditional techniques were then applied to Funds, Credit or Rates to package solutions for investors. The main goal was also to offer diversity in giving access to uncoraleted products with the same service you could expect from Traditional Equity Derivatives.

Nothing today would have been possible without the massive research investments made by leading Investment Banks to develop rpicing technics which have change the way many are approaching their perception of risk and ability to dynamically manage it.

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