Derivatives trading is now the world's biggest business, with an estimated daily turnover of over US$2.5 trillion and an annual growth rate of around 14 per cent. Derivatives markets have ancient origins, and a long and complex history of trading and regulation. This work examines the history of derivative contracts, their assignability and the regulation of derivatives markets from ancient Mesopotamia to the present day. The author concludes with an analysis of future regulatory prospects and of the implications of the historical data for derivatives trade and regulation.

With the collapse of Barings, the expulsion of Dalwa Bank from the US, and the bankruptcy of Orange County California, derivatives are increasingly intruding into the public consciousness. Key issues are whether derivatives are sufficiently understood and how they can be effectively regulated. These are increasingly acute because, as recent statistics show, derivatives, with a turnover of more than $2 trillion a day, constitute the world's biggest business activity. For lawyers, regulators and compliance officers operating in the international market, it is increasingly important to have a firm grasp of where derivatives fit in the financial services spectrum and how they are regulated in major market centres. This book provides critical information on these issues. It draws on a broad spectrum of legal regulatory, tax, and clearing and exchange trading expertise from both sides of the Atlantic. Consequently, it provides a resource for the views of leading experts from a variety of disciplines. It includes chapters by the market counsel of one of the world's leading exchanges, a managing director of one of the world's most important clearing houses, and the former chief derivatives regulator of the US, in addition to legal analysis and explication of a number of important derivatives issues by UK and US legal experts. Along with Swan's previous volume, "Derivative Instruments", it should help newcomers learn about derivative instruments and help experienced practitioners expand their understanding of the key issues involved.