Since institutions in this case do not own the underlying assets in which they trade, systematic, credit and counterparty risk accrues directly to the asset holder.

由于金融机构并不拥有他们所交易、分类、信贷的交易标的资产，交易对手风险直接施加在资产所有者身上。

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Derivatives are financial instruments whose value is based on some underlying asset, like a mortgage for instance, and and can be used to either hedge risk or for completely speculative positions.

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