The Post-Reform Guide to Derivatives and Futures - Hardcover

Peery, Gordon F.

Hardcover

ISBN 10: 0470553715 ISBN 13: 9780470553718

Publisher: Wiley, 2012

Synopsis

An in-depth look at the best ways to navigate the post-reform world of derivatives and futures

The derivatives market is one of the largest, and most important financial markets in the world. It's also one of the least understood. Today we are witnessing the unprecedented reform and reshaping of this market, and along with these events, the entire life cycle of a derivatives transaction has been affected. Accordingly, nearly all market participants in the modern economy need to view the handling of risk by derivatives in a very different way.

Many aspects of financial services reform are based on a belief that derivatives caused the Great Recession of 2008. While the difficulties we now face cannot be blamed solely on derivatives, the need to understand this market, and the financial products that trade within it, has never been greater. The Post-Reform Guide to Derivatives and Futures provides straightforward descriptions of these important investment products, the market in which they trade, and the law that now, after July 16, 2011, governs their use in America and creates challenges for investors throughout the world. Author Gordon Peery is an attorney who works exclusively in the derivatives markets and specializes in derivatives and futures reform and market structure. Since representing clients in Congressional hearings involving Enron Corp., he has developed extensive experience in this field. With this guide, he reveals how derivatives law, and market practice throughout the world, began to change in historic ways beginning in 2011, and what you must do to keep up with these changes.

• Explains what derivatives and futures are, who trades them, and what must be done to manage risk in the post reform world
• Accurately reflects the futures and derivatives markets as they exist today and how they will be transformed by the Dodd-Frank Wall Street Reform and Consumer Protection Act
• Highlights the risks and common disputes regarding derivatives and futures, and offers recommendations for best practices in light of the evolving law governing derivatives

The financial crisis has changed the rules of Wall Street, especially when it comes to derivatives and futures. The Post-Reform Guide to Derivatives and Futures will help you navigate this evolving field and put you in a better position to make the most informed decisions within it.

About this title

From the Back Cover:

Praise For The Post-Reform Guide to Derivatives and Futures

"This timely guide provides practitioners and policymakers alike with a comprehensive history and technical understanding of the financial crisis of 2008 and the role derivatives played in that event. With Gordon Peery's extensive experience in derivatives, he is able to both inform and sometimes challenge the reader regarding the policies and regulations resulting from the crisis. A worthy read for anyone practicing in this field and beyond."
―Walt Lukken, CEO of New York Portfolio Clearing and former Acting Chairman of the U.S. Commodity Futures Trading Commission

"Gordon Peery is at his best in this concise, organized, and thoughtful reflection on derivatives use and the market's adaptation to the post-Dodd-Frank world. Speaking in a conversational tone, he brings clarity and practical advice to a subject matter that in other hands would be dull and detail-numbing. Peery's enthusiasm for the subject and his love of teaching shines through every page and makes the read an easy and pleasant one. The historical context and insight he provides will augment the arsenal of market veterans and rookies alike."
―Deena C. Ethridge, Senior Managing Counsel, State Street Global Advisors

"Peery's book will become a well-worn fixture on any derivative player's bookshelf and serve as a rosetta stone for expert and novice alike. It translates almost incomprehensible statutes, regulations, and rules into useful and accessible schedules, charts, timelines, and analysis that explain the changing world of derivative regulation. It should be required reading for all those responsible for implementing Dodd-Frank reforms, providing a lifeline for those confronting changes that might otherwise be viewed as an impossible task."
―Professor Christian Johnson, University of Utah College of Law

"The financial crisis that began in 2008, and the worldwide economic devastation left in its wake, led to frantic and unprecedented efforts on the part of governments to more effectively regulate derivatives. In this timely and revealing book, Peery methodically explains the causes of the financial meltdown, debunks the myth that derivatives were solely to blame, educates the reader on the mechanics of derivatives and their markets, and explains the legislation―such as the Dodd-Frank Act―meant to regulate these markets. Written in a highly captivating and non-legalese style, this book will appeal to anyone yearning for a lucid explanation of how legislative reforms will profoundly transform the future landscape of derivatives markets."
―Dr. Fabrice Rouah, Director, Sapient Corporation and coauthor of Option Pricing Models and Volatility Using Excel-VBA

From the Inside Flap:

Derivatives law and market practice continue to change in historic ways since the Global Recession of 2008. Today there is no aspect of our financial system that evolves more dynamically than the derivatives market. Even though this market is arguably the largest and most powerful in the world, it is also the least understood. This is due to the arcane language that derivative practitioners frequently use, the complexity of these financial instruments, and the continuous evolution of the markets in which they trade. The need to understand derivatives has therefore never been greater. This text is designed to meet that need in an understandable way.

Since his work in Congressional hearings years ago involving derivatives traded by Enron Corp., author Gordon F. Peery developed a specialty in the legal aspects of futures and derivatives. As a leading thinker and counselor in derivatives reform, Peery reveals how derivatives law and market practice began to change in historic ways in 2011. Engaging and informative, The Post-Reform Guide to Derivatives and Futures

• Explains what derivatives and futures are, who trades them, and how this trading will be transformed at the direction of the leaders of G20 countries

• Illustrates how high-profile failures over the years involving Long-Term Capital Management L.P., The Bear Stearns Companies, Inc., and Lehman Brothers Holdings Inc., compelled lawmakers to transform the OTC derivatives market into a market that resembles the futures market

• Provides an anatomy of a cleared derivative, illustrating each stage in its life cycle

• Dispels the myth that derivatives caused the 2008 market crises and explains how that myth played a role in reform

• Presents a panoramic historical survey of derivatives, from those used thousands of years ago to the present, and concludes with resources for monitoring today's rapidly evolving law and practice

The Post-Reform Guide to Derivatives and Futures is the first comprehensive treatment of OTC derivatives reform that includes historical and practical reference points. It will enable readers of all experience levels to understand the evolution of post-reform derivative markets.

About this edition

• Publisher: Wiley
• Publication date: 2012
• ISBN 10: 0470553715
• ISBN 13: 9780470553718
• Binding: Hardcover
• Edition number: 1
• Number of pages: 384