Institut za međunarodnu politiku i privredu Beograd

Ekonomski fakultet Univerziteta u Beogradu


The development of the financial market to accelerate in all its segments. One of the best ways to ensure the domestic capital market liquidity is to attract new investors in securities. Financial derivatives are financial instruments, the least known in our market. Just their absence from the financial markets imposes the need for an understanding of their essence and creates the conditions for business activities, but also for the effective development of the financial markets. Financial derivatives are complex financial instrument derived from the basic financial products. They are used as hedging instruments but also for speculative purposes. Derivatives are usually classified into the types of basic products from which are derived, such as derivatives on securities, interest rates, derivatives on foreign currency, etc. The most famous financial derivatives are options and futures. Financial derivatives, in fact, represent standardized contractual relationship between two or more parties, and the realization of contractual liability depends on fulfillment of previously agreed conditions. The subject of the contract may be shares, interest rates, foreign currencies, and certain types of goods, stock index and more. Domestic investors have significant experience in the operations of financial derivatives, and their lack can cause significant turbulence in financial markets. Many examples of failures of banks in the world in recent years, is being linked to operations with financial derivatives. Particular attention should be paid to the regulation of financial derivatives operations by the central bank.

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