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Products such as swaps, forward rate agreements, exotic alternatives and other unique derivatives are generally traded in in this manner. The OTC acquired market is the largest market for derivatives, and is mostly uncontrolled with regard to disclosure of info between the parties, given that the OTC market is comprised of banks and other highly sophisticated parties, such as hedge funds.
According to the Bank for International Settlements, who initially surveyed OTC derivatives in 1995, reported that the "gross market price, which represent the cost of changing all open contracts at the dominating market value, ... increased by 74% considering that 2004, to $11 trillion at the end of June 2007 (BIS 2007:24)." Positions in the OTC derivatives market increased to $516 trillion at the end of June 2007, 135% greater than the level recorded in 2004. https://jeffreydcct851.tumblr.com/post/668627199430180864/which-of-these-arguments-might-be-used-by-someone |
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