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He likens using derivatives to power tools.
Pension funds today use derivatives to hedge investments.
Hospitals still use heroin derivatives to treat pain.
Citigroup, Lehman Brothers and other banks used derivatives to place hidden trillion-dollar bets.
It would require many derivatives to be traded through clearinghouses where they could be monitored.
Delta trading involves using derivatives to mirror the price moves in a basket of securities.
But you may want to force derivatives to go through an organized market.
Q. Can individuals use weather derivatives, to, say, hedge their barbecues?
"We have not given way on marking derivatives to market," he said.
It allowed derivatives to become commodities that could be traded in their own right.
Similar(1)
"Rule of law" equals "big banks using derivatives to get around capital rules".
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