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Securities Derivatives

  • CNBC_Explains_Video_Interest_Rate_Swaps.jpg

    Interest rate swaps are derivative instruments commonly used by sophisticated investors to allow cash flows on interest-earning securities or loans to be exchanged. CNBC explains.

  • MF Global Bankruptcy Fallout

    CNBC's Kayla Tausche reports the latest details on the MF Global bankruptcy, and offers a deeper look at what happened. Also, impact on oil, with David Greenberg, Greenberg Capital founder. And the Fast Money traders weigh in on who stands to benefit from MF Global's demise.

  • fx_fix_1_200.jpg

    European leaders finally agreed on the outlines of a rescue, and risk is back on big time — it's time for your FX Fix.

  • BlackRock's headquarters in New York.

    If I didn’t know better, I’d think Blackrock CEO Laurence Fink is doing his best to make sure his firm isn’t tarred and feathered by an ETF debacle, if one ever occurs.

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    While derivatives themselves carry risks and financial scandals have tarnished their image, many companies still use futures contracts, swaps, collars, and other hedging instruments to minimize volatility in their cost of doing business.

  • Jerome Kerviel shown here released on bail from La Sante Prison by a Parisian court on March 18, 2008 in Paris, France. Jerome Kerviel, the Societe Generale rogue trader was accused of losing 4.9 billion euros (7.2 billion US dollars) through unauthorised trading.

    A bright graduate joins an investment bank, but not in the glamorous, fast-moving –  and ultimately profitable -  trading role that he wanted. Rather, he is put into the "middle office," managing the IT systems that keep the trading desks running. Eventually, though, he is given a break, joining the bank's "delta one" trading desk, playing arbitrage between cash equities and equity derivatives.

  • CNBC_Explains_Video_CDOs.jpg

    One of the culprits blamed for the financial chaos of 2008-2009, were collateralized debt obligations. Like any derivative, the value of a CDO is based on an underlying asset. Khan of the Khan Academy explains.

  • CNBC_Explains_Video_MBS2.jpg

    Buying a home is usually the biggest individual investment people make in their lifetime and more often than not, a mortgage is involved. With such large sums of money involved in the mortgage market, financial firms profit by using a type financial instrument called mortgage-backed securities, or MBS.

  • Japan is monitoring the yen, and the Swiss are fed up with the franc - it's time for your FX Fix.

  • European Central Bank

    The New York Times considers the possibility that a firm or group of firms insured billions of dollars of European debt through derivatives.

  • Betty Davis in 'All About Eve'

    More Greek drama: rapid price changes in a corner of the currency markets suggest banks are worried about an interbank lending freeze, absent a rescue plan for Greece.

  • Merrill_BoA1.jpg

    The Securities and Exchange Commission is investigating Merrill Lynch’s sale of a complex mortgage-related security it created for Magnetar, an Illinois hedge fund, and the collateral manager involved in the deal. The FT reports.

  • AG Cuts Corn  Outlook, Prices Soar

    CNBC's Jane Wells and Scott Shellady, ICAP US with a look at higher corn futures after the AG department cut its outlook. The Fast Money traders also weigh in on their trades.

  • Value Trade or Trap?

    Are value stocks a good investment strategy in a choppy market? Insight with Howard Lutnick, BGC Partners CEO.

  • NY Stock Exchange Traders

    TD Ameritrade client trades were down 22% in May from a year ago, a sign investor sentiment is changing, Chief Executive Fredric Tomcyzk told CNBC Thursday.

  • finance_broker_desk1_200.jpg

    Derivatives traders in the United States will find out soon how a missed deadline for new rules will be handled, a senior U.S. regulator said on Tuesday.

  • Emerging Markets Opportunities

    Mark Mobius, Templeton Emerging Markets Group shares his strategy for overseas investments, with CNBC's David Faber.

  • Sen. Chuch Schumer

    It looks like Senators Charles Schumer and Kirsten Gillibrand have come back into the Wall Street fold.

  • NASDAQ MarketSite Tower, Times Square, New York, NY

    Deal-making by both the London Stock Exchange (LSE) and Nasdaq-OMX hit snags this week on concerns over sovereignty and competition, leaving room for speculation that Nasdaq will now bid for the LSE.

  • The Federal Reserve headquarters in Washington, DC.

    Wall Street banks are warning they may have to cede much of the European derivatives market to the likes of Deutsche Bank  and Barclays Capital if US regulators follow through on proposals to apply new regulations extraterritorially, the FT reports.