The use of financial instruments that track markets, such as exchange traded funds and commodity trading advisors, was part of the reason for the phenomenon, he said.
That out-of-control innovation is reflected in the growth of securities intended to spread risk widely through the use of financial instruments called derivatives.
A spokesman for Prudential, which opposed certain proposed restrictions on the use of financial instruments known as derivatives, said the donation was not earmarked for a specific issue.
Development activists have given a guarded welcome to moves by the European Union to curb food speculation by limiting the use of financial instruments linked to commodities, which has been blamed for the rise in food prices.
For financial instruments, such as stock options and many other derivatives, this was often (conveniently) zero, or close to it.This mattered less when the use of financial instruments was limited and markets for them were small.
As the authors' model strives for combining process operations and finances (taking strategic decisions of facility opening and capacity into account), a cash balance for each period is guaranteed by the use of financial instruments, i.e., marketable securities, short- and long-term credits.
