FINOSUTRA

Derivatives. In the modern world, there is a huge variety of derivative products available. They are  either traded on organised exchanges (called exchange traded derivatives) or agreed  directly  between  the  contracting  counterparties  over  the  telephone  or  through  electronic media (called Over‐the‐counter (OTC) derivatives).  Few complex products are  constructed on simple building blocks like forwards, futures, options and swaps to cater  to the specific requirements of customers.   Over‐the‐counter market is not a physical marketplace but a collection of broker‐dealers  scattered across the country. Main idea of the market is more a way of doing business  than a place. Buying and selling of contracts is matched through negotiated bidding  process  over  a  network  of  telephone  or  electronic  media  that  link  th...