Many people entering into these futures trades are doing it for hedging purposes or to protect their portfolios if Italy defaults.
He now believes that, over all, producers will do no net selling of gold for hedging purposes in the first half of this year.
Until next April at least, Japanese banks are not required to value derivatives used for hedging purposes at market prices, nor to match them to assets and liabilities of similar maturity.
But Goldman and other firms eventually used the C.D.O.'s to place unusually large negative bets that were not mainly for hedging purposes, and investors and industry experts say that put the firms at odds with their own clients' interests.
The Senate subcommittee report says the bank's communications officer and chief investor liaison circulated talking points and met with reporters and analysts with the "primary objectives" to communicate that the chief investment office's activities were " 'for hedging purposes' and that the regulators were 'fully aware' " of the trading.
Such a strong crackdown could hit liquidity in those markets used for hedging purposes, it warned.Instead, regulatory measures should focus on raising confidence in the "good functioning" of the market, including by increasing amount of available information on futures trading.
Thus, the impact of the number of Nifty market lots traded for hedging purposes had a significant effect on Vt.
For hedging purposes, we define good-deal hedging strategies as minimizers of suitable a-priori risk measures under optimal risk sharing with the market.
It's mostly used for investment and hedging purposes in Europe, North America and Asia, but in places like India and in many Arab countries, gold is emblematic of deep-rooted tradition.
We consider only studies investigating non-financial firms because companies from the financial sector do not necessarily use derivatives exclusively for hedging purposes, but also for trading or speculative activities (e.g., Allayannis and Weston 2001; Gay and Nam 1998; Heaney and Winata 2005).
