Clearing and Settlement of Derivatives

can be used, which markets are acceptable and sometimes how the

products can be used?

Some funds like hedge funds are registered offshore and so may be

exempt from some regulation that applies to onshore funds thereby

allowing much greater and unrestricted use of derivatives.

Needless to say, some rules are based on Conduct of Business

Rules (can be found at www.fsa.gov.uk) and refer to the protection of

clients’ assets, type and accuracy of communication, etc; and in fact

to most of the issues we have highlighted in this chapter and the rest

of the book.

Summary

The growth in the use of derivatives and the use of OTC derivatives

is certainly ...