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Derivatives

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Derivatives
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1 Introduction to derivatives 1.1 Derivatives defined . . . . . . . . . . . . . . . . 1.2 Products, participants and functions . . . . . . . 1.3 Derivatives markets . . . . . . . . . . . . . . . . 1.3.1 Spot versus forward transaction . . . . . 1.3.2 Exchange traded versus OTC derivatives . 1.3.3 Some commonly used derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 10 11 12 12 14 17 17 17 19 20 20 22 22 22 22 23 25 29 29 30 30 30 30 31 31 32 32 33 33

2 Commodity derivatives 2.1 Difference between commodity and financial derivatives 2.1.1 Physical settlement . . . . . . . . . . . . . . . . 2.1.2 Warehousing . . . . . . . . . . . . . . . . . . . 2.1.3 Quality of underlying assets . . . . . . . . . . . 2.2 Global commodities derivatives exchanges . . . . . . . . 2.2.1 Africa . . . . . . . . . . . . . . . . . . . . . . . 2.2.2 Asia . . . . . . . . . . . . . . . . . . . . . . . . 2.2.3 Latin America . . . . . . . . . . . . . . . . . . 2.3 Evolution of the commodity market in India . . . . . . . 2.3.1 The Kabra committee report . . . . . . . . . . . 2.3.2 Latest developments . . . . . . . . . . . . . . . 3 The NCDEX platform 3.1 Structure of NCDEX . . . . . . . . . . . . . . 3.1.1 Promoters . . . . . . . . . . . . . . . .

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