Derivatives have become important instruments for many sovereigns to manage the risks related to debt management operations as well as for improving the profile of the debt. The use of these instruments by market participants adds to the liquidity in secondary government securities markets. In general, derivatives and risk management instruments can be used by both the debt managers and market participants to protect the value of an investment or transform the characteristics of assets or liabilities into alternative, more desirable forms. An important policy issue for debt managers and market participants is the relationship between the cash and derivative markets for public debt instruments, especially the use of futures and swaps for trading and hedging purposes. There are two important types of links. The first one is based on a complementary effect, whereby liquidity in the two markets tends to be positively related, with trading in the cash market leading to more hedging activities in the futures market. The second link follows from the situation that cash issues and future contracts may act as substitutes for each other, because both markets reflect the same underlying risks.
In that situation, liquidity would be inversely related in the two markets.
This policy area includes a discussion on how:
The following are documents published up to and including the year 2003. From 2004 to 2010 all documents can be found only in the archive available in the website’s Reserved area. Instead, since January 2011, all documents will be found in both areas of the website. Access to the Reserved area is free, but limited to Partners only. Please find more information at the Join us section.
| MMonday | Ttuesday | Wwednesday | Tthursday | Ffriday | Ssaturday | Ssunday |
|---|---|---|---|---|---|---|
| 1 February | 2 February | 3 February | 4 February | 5 February | ||
| 6 February | 7 February | 8 February | 9 February | 10 February | 11 February | 12 February |
| 13 February | 14 February | 15 February | 16 February | 17 February | 18 February | 19 February |
| 20 February | 21 February | 22 February | 23 February - Found events | 24 February | 25 February | 26 February |
| 27 February | 28 February | 29 February |
The aim of our Discussion Forum is to promote dialogue on specific topics proposed by the Secretariat and by Partners.
