Currency Derivatives

The development of financial systems is shaped by the high level of the global economy situation changeability indirectly influenced by interventionist economic policies as well as financial crisis and state of finances of a given country. The attempts undertaken by particular governments to activate economic growth indirectly contributed to the growth of investment and credit risk as well as to creating speculation bubbles in the capital markets stocks. The latest global financial crisis from 2008 was an effect of increasing discrepancy, mismatch between that fast growth of financial instruments including credit financial instruments and the matter of improvement of credit risk management process connected with concluding transactions based on those instruments. In this dissertation, there is a growth of the significance of the credit risk management improvement presented in the context of appearing temporarily financial crisis and thus undertaken interventionist anti-cyclic economic policy.

This paper examined the impact of foreign currency derivatives on firm value using several findings from firms across the world with significant exchange rate exposure. The results show that foreign currency derivatives usage affect firm value positively. The study also revealed that foreign currency derivatives can be used for managers' self-interest, for hedging or for speculative purposes. Furthermore, the study found strong evidence that the use of foreign currency derivatives for firms that have strong internal firm-level or external country-level corporate governance is associated with a significant value premium. The paper therefore emphasizes that investors can appeal to a firm's internal (firm-level) and external (country-level) corporate governance to draw inferences on a firm's motive behind the use of derivatives, since well-governed firms are more likely to use derivatives to hedge rather than to speculate or pursue managers' self-interest.

The human capital development of a country is measured using health and education. The need to provide healthy and competent manpower for nation development has been at the forefront of policy makers especially in developing countries. There have been public outcries over the poor funding of health and education sectors in Nigeria. Though, there are a lot of literatures on the impact of government expenditure on economic growth but consensus has not been reached from empirical findings about the nature of the relationship. It is on this note the study examined the impact of government sectoral expenditure on economic growth using evidence from ARDL approach. The study used secondary data sourced from CBN statistical bulletin from 1981-2017. The study adopted ARDL and bound testing econometric approach. The ARDL short run result revealed that government health expenditure (GHEXP) has inverse and insignificant effect on economic growth (RGDP). In addition, government education expendi...

ABSTRAKT: Për herë të parë në Shqipëri, hapet debati mbi monedhen e decentralizuar elektronike, Bitcoin (BTC). Kjo analizë shpjegon nga prespektiva ligjoro-financiare: konceptin Bitcoin, funksionimin, tregun e tij, transaksionet tregtare, avantazhet dhe disavantazhet, si dhe qasjen ligjore që sistemi ynë aktual ka ndaj këtij fenomeni.
Baza e analizës lidhet me pyetje si: A e parashikon legjislacioni yne aktual praninë e një monedhe të tillë, apo legjislacioni ka nevojë për pershtatje bazuar në sisteme ligjore të shteteve që tashmë e kanë pranuar monedhen? Si do jetë situata ligjore dhe financiare që do krijohet me hyrjen e BTC në treg?
Ne bazë të kësaj analize, kemi dalë në disa konkluzione dhe kemi rekomanduar zgjidhje të mundshme për një infrastrukturë ligjore që nuk cënon sigurinë juridike dhe ruan parimin e Laissez-faire në treg.


ABSTRACT: For the first time in Albania, takes place the debate on decentralized electronic currency, Bitcoin (BTC). This analysis explains from a legal-financial perspective, the concept of Bitcoin, its functionality, market, commercial transactions, advantages and disadvantages, as well as, the legal approach that our actual system has toward this phenomenon.
The bases of this analysis relate to questions, such as: Does our current legislation provide the necessary legal infrastructure for such phenomena, or regulatory adjustments should be made based on practices of states that have already accepted it? What will be the legal and financial situation like, upon the introduction of BTC in the market?
Based on the analysis, we have come up with some conclusions and made recommendations on potential solutions for establishing a legal infrastructure that does not infringe the legal certainty and preserves the principle of laissez-faire in the market.

Compare and contrast interest rate parity (IRP), purchasing power parity (PPP), and the international Fisher effect (IFE).
1. Based on PPP theory, what is a general forecast of the values of currencies in countries with high inflation?
2. How is it possible for PPP to hold if the IFE does not? (Benedictine, n.d.).
Forward rates for currencies are determined by the market forces of supply and demand.  “In some cases, the forward rate may be priced at a level that allows investors to engage in arbitrage.  Their actions will affect the volume of orders for forward purchases or forward sales of a particular currency, which in turn will affect the equilibrium forward rate.  Arbitrage will continue until the forward rate is aligned where it should be, and at that point arbitrage will no longer be feasible” (Madura, 2012, p. 216). When arbitrage no longer is feasible; IRP (Interest Rate Parity) exists between the two countries whose currencies are being exchanged.  “In equilibrium, the forward rate differs from the spot rate by a sufficient amount to offset the interest rate differential between the two currencies” (Madura, 2012, p. 220).

This research paper aims to investigate the profitability of five popular variations of moving averages: simple (also referred to as arithmetic), exponential, triangular, variable, and weighted as the main tool of technical analysis on the end of the day data on Indian market index S&P CNX Nifty 50 from January 2004 to December 2014. Moving averages performance is checked with three basic rules of trading using moving average, first with direction of moving average, second with price & moving average crossover and third rule is crossover of two moving averages of different period. An optimization technique is used to find the most profitable trading system among all the moving averages. The results show that trading rules based short term moving average generate more profit with less drawdown and outperform buy-and-hold strategy for almost all type of moving averages.

Can-Do Options are derivative products listed on the JSE's derivative exchanges --- mostly equity derivative products listed on Safex and currency derivative products listed on Yield-X. These products give investors the advantages of listed derivatives with the flexibility of ``over the counter" (OTC) contracts. Investors can negotiate the terms for all option contracts, choosing the type of option, underlying asset and the expiry date. Many exotic options and even exotic option structures are listed. Exotic options cannot be valued using closed-form solutions or even by numerical methods assuming constant volatility. Most exotic options on Safex and Yield-X are valued by local volatility models. Pricing under local volatility has become a field of extensive research in finance and various models are proposed in order to overcome the shortcomings of the Black-Scholes model that assumes the volatility to be constant.

In this document we discuss various topics that influence the successful construction of implied and local volatility surfaces in practice. We focus on arbitrage-free conditions, choice of calibrating functionals and selection of numerical algorithms to price options. We illustrate our methodologies by studying the local volatility surfaces of South African index and foreign exchange options. Numerical experiments are conducted using Excel and MATLAB.

In the world of globalization, most business enterprises operate in more than one country, receiving foreign currency for exports and paying foreign currency for imports, and this exposes them to foreign exchange risk. Each entity and/or individual that has exposure to foreign exchange rate risk will have specific foreign exchange hedging needs; on the other hand, the effectiveness of different hedging techniques depends on the specific purposes they serve. The present study extends the analysis of Dash et al. (2008) in comparing the performance of four different Forex hedging strategies, approaching the problem from the point of view of exchange rate dynamics, using a model for exchange rate movements. Based on the results of the simulation of this model, the hedging strategies which yielded the highest returns and the lowest variability of returns were identified. The results of the study suggest that when cash inflows only are to be hedged, options hedging using out-of-the-money currency put options yields best results; when cash outflows only are to be hedged, options hedging using out-of-the-money currency call options yields best results, and when both cash inflows and outflows are to be hedged, options hedging using out-of-the-money currency put options for inflows and out-of-the-money currency call options for outflows yields best results. Finally, the results of the study show that it is always risky to remain unhedged against foreign exchange rate fluctuations. These strategies can be used by business enterprises that have significant exposure to foreign exchange rate volatility.

This study investigates the short and long-runimpact of human capital development on economic growth in Nigeria using time series data sourced from the central bank of Nigeria statistical bulletin, 1981 to 2016. The study employedAugmented Dickey-Fuller techniques to examine the unit root property of the variables followed by Autoregressive Distributive Lag Model (ARDL) to determine long run relationship or cointegration. The findings from the ARDL model indicates thatthere is a long-run relationship. In the long-run, life expectancy and public expenditure on health are found to have a significant positive impact on economic growth. While in the shortrun, life expectancy, gross capital formation, primary school enrolment and recurrent expenditure on health haveapositive impact on economic growth. On this note, the study recommended that the government should design and support scheme that enhances primary school enrolment, more budgetary allocation to the health and education sector and ensure efficient utilization. There is a need to improve health care facilities in the country and motivate the healthcare personnel with good remuneration to guarantee increased productivity in the sector and the country as a whole.

The current study updates the question about the relation of Chinese currency with its major trading partner currencies. The study revolves to analyze the Chinese exchange rates. It is assumed that Chinese Yuan have a major relation with US Dollar and in order to find out such impact, around 2060 observations have been used and Dickey Fuller Unit root test has been applied in order to find out the trend and checked non-stationary at several levels. After that Multiple Regression had been applied on stationary observations. Finally result revealed that US Dollar and Japanese Yen have a significantly relation with Chinese Yuan whereas Euro and Great Britain Pound are not having significantly relation. It was also found that Chinese Yuan let itself change due to some internal factors.

While it is early to mourn the euro, it would be unwise to ignore the magnitude and significance of the changes now taking place in the Eurozone. No doubt, the economic and financial problems in the Eurozone are serious and plentiful. The area is in the midst of multiple, frequently overlapping and mutually reinforcing crises. First, a fiscal crisis is centred
in Greece but visible across the southern Eurozone and Ireland. Governments in Greece and Italy have been replaced in the space of a week because they were unable to guarantee the
rapid implementation of economic reforms. Second, a competitiveness crisis is manifest in large and persistent pre-crisis current-account deficits in the Eurozone periphery and even larger intra-Eurozone current-account imbalances. Italy has accepted IMF and EU monitoring of reforms including deep liberalisation measures that had so far seemed out of reach, notably on labour legislation. Third, a banking crisis was first evident in Ireland but is now spreading throughout the Eurozone via accelerating concerns over sovereign solvencies. Spain, Ireland, Portugal and Greece are undertaking fiscal and structural adjustment measures – in Ireland, these are already paying off in terms of economic performance and credibility. However, one of the fascinating aspects of the European debt crisis has been the resilience of the euro, suggesting
these fears are overblown. The euro is still a reserve currency, oblivious to the chaos ravaging European economies. As the Euro zone debt crisis enters a new uncertain year, the
question about whether the euro can survive rises. This paper argues that the European crisis is political, and even largely presentational. The paper shows that the Euro can survive as the policymakers in the Eurozone still have various tools to use. These tools include creating exit rules, implementing new stabilisation rules and instruments, adopting new fiscal policy, introducing conditional Eurobonds, using inflation differentials and providing more independence to the European Central Bank.

Ֆինանսական շուկայում օգտագործվող ֆինանսական գործիքները և այդպիսի շուկաներում ներդրողների իրավիճակային անորոշությունները գնալով ավելի են բարդանում, ինչն էլ բերում է ավելի բարդ ֆինանսական գործիքների կիրառությանը, որոնք բավականին դժվար են վերլուծելու համար: Ներդրումային ռիսկի մակարդակը աճում է միաժամանակ, այնպես, որ բոլոր նրանք ովքեր գործում են ֆինանսական շուկայում հանկարծակիորեն պետք է արձագանքեն շուկայի փոփոխություններին և փոփոխեն իրենց ներդրումային ռազմավարությունը ժամանակին: Այդ իսկ պատճառով ներդրողները փնտրում են նոր տեսակի գործիքներ, որոնք ավելի շատ կհամապատասխանեն նման իրավիճակներին և կապահովեն ներդրումից շահույթ: Այս նոր տիպի օպցիոններն են էկզոտիկ օպցիոնները: Վերջին տասնամյակներում էկզոտիկ օպցիոնների շուկան գնալով զարգանում է զարգացած ֆինանսական շուկաներում

1. Compare and contrast forward and futures contracts.
2. How can currency futures be used by corporations?
3. How can currency futures be used by speculators? (Benedictine, 2012).
According to Madura (2012); “A currency derivative is a contract whose price is partially derived from the value of the underlying currency that it represents.  Some individuals and financial firms take positions in currency derivatives to speculate on future exchange rate movements.  MNCs [Multinational Corporations] commonly take positions in currency derivatives to hedge their exposure to exchange rate risk” (p.123).

In the first decade of the current century, the liberalized economy of India witnessed manifold increase in global trade, owing to which Indian corporates were exposed to the foreign currency fluctuation thus risk of loss due to currency fluctuation. Although forward contracts are the most prevalent derivative contracts to hedge currency risk. However, Indian corporates have undertaken other form of derivatives such as swap, option, and swap option to hedge foreign currency risk. However, lack of inherent understanding of the risk on these derivative instruments, which was meant for hedging currency risks, lead several corporates to incur huge losses, forcing them to near bankruptcy. The decade 2000-2010 and thereafter saw large losses owing to derivatives both in India and across many other economies, thus impacting corporate profitability, leading to bankruptcy or near bankruptcy for some Indian firms and firms across the globe. The losses incurred by corporates led to acrimonious viewpoints between market intermediaries such as banks and Indian corporates on aspects such as need to undertake such derivatives, leading to litigation, some of which are still pending in Indian courts. Thus, the financial system suffered, and continues to suffer, from many structural gaps and lacks clear understanding of the products, indicating the need for a robust risk management framework. It is still felt that corporates are yet to define their proper risk appetite and risk management framework to undertake derivatives, particularly currency derivatives. Hence, this study is focused on evolving a suitable framework in developing a currency derivative framework for effective risk management for Indian corporates.

This research paper aims to investigate the
profitability of five popular variations of moving
averages: simple (also referred to as arithmetic),
exponential, triangular, variable, and weighted as the
main tool of technical analysis on the end of the day data
on Indian market index S&P CNX Nifty 50 from January
2004 to December 2014. Moving average performance is
checked with three basic rules of trading using a moving
average, first with direction of the moving average,
second with price & moving average crossover and third
rule is a crossover of two moving averages with different
periods. An optimization technique is used to find the
most profitable trading system among all the moving
averages. The results show that trading rules based short
term simple moving average generate more profit with
less drawdown and outperform buy-and-hold strategy for
almost all type of moving averages.

In this study we build upon a Markov-Switching Bayesian Vector Autoregression (MSBVAR) model to study how the credit default swaps (CDS) market in the euro area becomes an important chain in the propagation of shocks through the entire financial system. We find that an unexpected increase in the banks’ (sovereign) CDS spread is followed by an increase in the sovereign (banks’) CDS spreads. An unedited insight that emanates from this research is that the aforementioned effects become stronger in periods of elevated uncertainty in the CDS market. Several implications can be derived from this research. First, in line with the existing literature, we identify that government interventions in the banking sector deteriorate the credit risk of sovereign debt. Second, higher risk premium that is required by investors for holding riskier government bonds depresses the sovereign debt market, it impairs balance sheets of the banking sector, and it depresses the collateral value of loans leading to bank retrenchment. The ensuing two-way banking-fiscal feedback loop indicates that government interventions do not necessarily stabilize the banking sector. Indeed, the prospect of government intervention allow banks to be more leveraged and, hence, more vulnerable to a sovereign default. We also document a negative response of the EUROSTOXX stock index and positive response of the VSTOXX volatility index to a unexpected increase in the banks’ and sovereign CDS spread. Our findings are corroborated by several robustness checks.

Este documento presenta información relevante sobre la importancia de las coberturas y su relación con el valor de la empresa. Expone además una caracterización del uso de los instrumentos derivados de tasa de cambio por parte de las empresas del sector real colombiano que cotizan en la Bolsa de Valores de Colombia. Para ello se investigaron los estados financieros de empresas colombianas que cotizan en Bolsa y se encontró 1 que algunos sectores importantes en la base económica del país, con mayor volumen de participación del mercado accionario, son las que menos usan este tipo de instrumentos de cobertura en mercados estandarizados.

The purpose of this paper is to present an overview on the use of derivatives instruments bye the real sector of the Colombian companies. To do this, was made an exploratory research above the financial statements of public companies traded on the Colombian Stock Exchange (Bolsa de Valores de Colombia –BVC-). For that, were researched the colombian financial statements for listed companies and found that some important sectors in the base economic of the country, with the largest volume participation of the Stock Market, are the least likely to use this type of hedging instruments in standardized markets.

La crescente rilevanza delle currencies digitali nella geoeconomia del XXI secolo è confermata anche dall’ultima Relazione presentata al Parlamento italiano e redatta dal Sistema di informazione per la sicurezza della Repubblica. I Servizi di intelligence italiani legano a doppio filo la moneta virtuale alle minacce cyber, così come alle dinamiche economiche-finanziarie, prevedendo nello specifico che: “nato con l’obiettivo di stabilire una circolazione monetaria indipendente da Governi e banche centrali, il bitcoin consente la movimentazione a livello internazionale in modo rapido, anonimo e pressoché gratuito di somme di danaro anche consistenti”. La moneta virtuale e ancor di più il sistema su cui poggia, detengono una duplice caratteristica: benefici per la collettività (abbattimento dei costi di transazioni economiche e finanziarie) e rischi alla sicurezza nazionale (dal riciclaggio alla semplice evasione fiscale, dal traffico illecito fino alle transazioni ad opera di gruppi criminali transnazionali). L’effetto sistemico generato dalla stessa presenza della moneta virtuale e l’elevato “rischio rapina”, nel lungo periodo, potrebbero inficiare la stabilità del sistema economico e finanziario internazionale. La nostra ricerca si propone di integrare due piani accademici apparentemente in dicotomia (gli studi di ingegneria informatica con l’analisi delle scienze sociali) ma ad oggi indispensabili per comprendere le minacce asimmetriche che poggiano sempre di più sull’utilizzo di tecnologie informatiche ICT. In particolare lo studio si focalizzerà sull’attività di mining che costituisce la vera novità sostanziale del sistema bitcoin. Le domande di fondo saranno le seguenti: quali conseguenze comporta l’utilizzo di questa valuta? Chi la gestisce e a quanto ammonta il volume delle transazioni finanziarie? È veramente garantito l’anonimato? È possibile “scardinare” il sistema? Quali sono le innovazioni utili per i consumers del sistema di transazioni? Che ruolo hanno i Servizi di intelligence nell’azione informativa per contrastare le attività criminali perpetrate attraverso l’utilizzo della moneta virtuale? Nell’ultima parte del nostro lavoro ci proponiamo di tracciare alcuni possibili scenari futuri, tenuto conto dei punti di forza e delle criticità emerse dall’utilizzo di questa nuova moneta e, soprattutto, alla luce del rivoluzionario sistema informatico sul quale poggiano le transazioni effettuate con la moneta virtuale.

The financial theory (Modigliani & Miller, 1958) presents risk management as a matter without importance in companies, given that the shareholders themselves managed their hedges, diversifying their portfolios. However, subsequent studies dispute said premise and present evidence that business financial hedging improves performance and increases the value of the same (Ahmed, Azevedo, & Guney, 2014; Allayannis & Weston, 2001; Kapitsinas, 2008). The efficient market risk management is supported in the financial derivatives and demands strategic and efficient administrators in hedges that add value, especially in the face of clashes and macroeconomic and financial imbalances. The empirical evidence analyzes the behavior of the Q-Tobin as an indicator of the effect of the hedge strategies for the exchange rate associated with the market value. The aim of this work is to find evidence in Colombia on the effect of the use of derivatives in the market value of the company. Its added value lies in the analysis that is done by economic sectors, identified by ISIC codes and grouped into five (5) macro sectors (Agriculture and livestock, Commercial, Industrial or Manufacture, Services, and Construction). The methodology used includes the estimation of several regression models in data panels, using a Pooled regression model with fixed and random effect estimators through the maximum likelihood estimator. In general, a statistical and financially significant premium for hedges was found for companies exposed to exchange rate risks that use derivatives of a 6.3% average on the market value. Additionally, mixed results were found in relation to the variables analyzed in the model.

The Discussion Case: “Hedging Foreign Currency Risk” states and asks: Review the hedging web link and PDF file on the Multimedia page, and then respond to the following talking points:
  1. Why should an MNC identify net exposure before hedging?
  2. Explain how a U. S. corporation could hedge net receivables in Euros with futures contracts. Explain how a U. S. corporation could hedge net payables in Japanese yen with futures contracts.
  3. Explain how a U. S. corporation could hedge net receivables in Malaysian ringgit with a forward contract. Explain how a U. S. corporation could hedge payables in Canadian dollars with a forward contract.
(Benedictine, n.d.).
The answer as to why an MNC needs to identify net exposure before hedging lies with understanding the level of risk posed by positions in foreign currency and / or the impact of other international companies within their industry on their particular market.  In the reference provided on this week’s multimedia link the following was stated regarding risk exposure: “The single most important point to take away from this [hedging article] is that financial risk management is critical to the survival of any non-financial corporation.  Investors who have real money at risk must understand the exposures facing the firms in which they invest, they must know the extent of risk management at these companies and they must be able to distinguish between good risk management programs and bad ones.  Without this knowledge, they may be in for some ugly surprises” (Finpipe.com, 2013).

In order to determine the relationship between few factors whom not calculated or evaluated by central bank is a tough job. The researcher tried to accumulate such secondary factors which are directly combined together and form very important primary factors. The researchers have reviewed many international researches in order to enhance the accuracy and focus of the research data and their variables. These researches has provided many new variables which are not very commonly used in our monetary research paradigm. This is a descriptive research where the researchers identified some new dimensions of usage of secondary variables into the formation of primary variables. There are many limitations researchers have during the course of the research. The most important and notable is the unavailability of the statistical data regarding many important statistical aspects of the economy. In the conclusion the researchers have found that the inflation, interest rate and exchange rates are...

In order to determine the relationship between few factors whom not calculated or evaluated by central bank is a tough job. The researcher tried to accumulate such secondary factors which are directly combined together and form very important primary factors. The researchers have reviewed many international researches in order to enhance the accuracy and focus of the research data and their variables. These researches has provided many new variables which are not very commonly used in our monetary research paradigm. This is a descriptive research where the researchers identified some new dimensions of usage of secondary variables into the formation of primary variables. There are many limitations researchers have during the course of the research. The most important and notable is the unavailability of the statistical data regarding many important statistical aspects of the economy. In the conclusion the researchers have found that the inflation, interest rate and exchange rates are highly correlated with currency trading. By manipulating such factors, inflation and exchange rates are exert influenced by central banks and varies impact currency and inflation. The valuation of foreign currency trading needs high attention from capital formation, determinants of inflation rate and proper utilization of supply of money in economy. The growth rate of GDP is essential factor for both economic development and foreign currency trading.

On 19 June 2014, the South African equity Volatility Index (SAVI) hit its lowest level since May 2007 - 11.88%. Since June 2014 it has been creeping back up to 24.55 on 15 January 2015. It then it slid back and is now treading water just below 20% at the end of June - this is still low compared to historical levels though. A long term downward trend that started after the 2008 financial crises is still in place. The SAVI is the South African VIX measure where it measures the 3 month implied volatility for the JSE/FTSE Top 40 tradable index.

This week, Sterling has slipped slightly from its seven-year high but remained strong. Market gurus are pointing to the market's pensive attitude concerning the possibility of a Greek default, which could be bad news for the Eurozone. With a possible deal on the horizon, a general sense of uncertainty hangs in the air, as pundits wait to see which way the axe falls.

Talks between Greece and its creditors failed to reach a resolution on Sunday, sending shivers of trepidation through the international investment community. However, Greece remains hopeful that they can strike a deal with the European Central Bank this week. They will need to satisfy the bank's concerns over Greece's GDP, and they will no doubt paint a rosy picture of their prospects.

The European Union has been, and still remains one of the most amazing phenomena that has been witnessed in the 21st century.  It is an epic story of different countries getting past their differences and trying to move forward in order to create a system of one economic currency and having the ability to transact globally with all nations through the world that will not only work for themselves economically and socially, but will also have the ability to usher the Union into the new world order and be recognized in the modern era of Globalization in the eyes of all world governments.  However, past issues that have taken affect with respect to the past 15 years since its founding have plagued the Union making its future questionable to those not only within the Union itself and each other, but also in the eyes of other nations, such as the United States, China, Japan, and England, all of whom are a part of the new Global Economic Movement.  However, in order for one to fully understand the significance of the problems, one must go back to the earlier times of Europe before it became known as the European Union.  In this paper, I will take you through a historical journey that shows you the early origins of the first attempts not only to bring about the European Union, but also to point out the problems then and now that continue to plague it up to its modern existence.

В статье проведен анализ составляющих частей финансового рынка и рассмотрены различные подходы к определению сегментов финансового рынка. Приведены статистические данные о развитии каждого сегмента в составе украинского финансового рынка. Предложена схема взаимодействия между его элементами, где сегмент деривативов выделен как отдельный элемент, но в составе рынков, которые образуют полную структуру финансового рынка
Ключевые слова: финансовый рынок, финансовые инструменты, сегмент, деривативы, объем торгов

The internationalization of the yuan has had a direct impact on China’s wielding of economic power. This short paper examines and reflects on China's current exchange rate policy, which while creating competitive advantage, has also spawned criticism.

I presented how it will be inevitable that the economy will shift to gifting to secure the greatest security and options to our lives, for our own self interest. The idea that scarce money will ever measure our unlimited capacity to create quality. We have, and will, always value the quality of others. Not valuing this for itself has been the largest con we have accepted. Rather than taking something away and selling it back, we will create and give, valued as the best creators in our field of choice.

"The article analyzes the component parts of the financial market and represents the various approaches to the definition of financial market segments. It presents statistics about development of each segment of the Ukraine financial market. It
demonstrates the scheme of interaction between financial market elements where the derivatives segment is highlighted as a separate element, but included to the markets which form the complete structure of the financial market.
Keywords: financial market, financial instruments, segment, derivatives, trading volumes."