Khuzami also added five additional units to oversee various areas of the financial industry: asset management, large scale market abuses, complex derivatives and financial products, foreign bribery and corruption, and the municipal and public pension markets.
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During the financial crisis, the credit default swap (CDS) market, a part of the OTC derivatives market, took center stage as difficulties in financial markets began to intensify and the counterparty risk involved in a largely bilaterally cleared market became apparent.
Financial derivatives can work like traditional insurance: they shift market risks to somebody else for a fee (premium).
The enforcement chief also created five specialized units to oversee the following areas: asset management, large scale market abuses, complex derivatives and financial products, foreign bribery and corruption, and the municipal and public pension markets.
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Others argue that the financial system itself hangs in the balance if big players in the derivatives market are left unrestrained.
It'd be hard to find a hotter stock than the Chicago Mercantile Exchange, the world's largest open-outcry derivatives market that some have called the " Google " of the financial sector because of its high-flying price surge.
It'd be hard to find a hotter stock than the Chicago Mercantile Exchange (nyse: CME - news - people ), the world's largest open-outcry derivatives market that some have called the " Google " of the financial sector because of its high-flying price surge.
That's a nice way of saying that during recent years the Harvard Management Company, the university's investment subsidiary, diverted large portions of the university's endowment assets out of safe but poky low-yield securities (as of last June fixed-income investments accounted for only 16% of Harvard's portfolio) and into what this Forbes story describes as "exotic financial instruments": derivatives, hedge funds, private equity partnerships, commodities and emerging-market equities.
Financial and technology companies came and went, stock market values soared, plummeted and rebounded, housing derivatives blew up, and other foundations were laid bare.
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