DERIVATIVES MARKETS AND SYSTEMIC RISK: AN ANALYSIS OF THE GLOBAL FINANCIAL LANDSCAPE

Authors

  • Dr. Farhan Ali Department of Finance, Lahore School of Economics, Lahore, Pakistan. Author

Keywords:

Derivatives, Systemic Risk, Financial Markets, Counterparty Risk, Market Interconnectedness

Abstract

This scholarly article examines the intricate relationship between derivatives markets and systemic risk within the global financial landscape. By employing a comprehensive analysis, we investigate the various channels through which derivatives can contribute to systemic risk, including market interconnectedness, counterparty risk, and regulatory challenges. Through an exploration of historical events and empirical data, this study aims to shed light on the potential vulnerabilities that arise from the extensive use of derivatives and their impact on the stability of the financial system. The findings provide insights for policymakers, market participants, and academics seeking to understand and mitigate systemic risks associated with derivatives markets.

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Published

2022-12-31

Issue

Vol. 6 No. 01 (2022): Journal of Applied Finance and Economic Policy

Section

Research Articles

License

Copyright (c) 2022 Dr. Farhan Ali (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

All articles in the Journal of Applied Finance and Economic Policy are published under the Creative Commons Attribution 4.0 (CC BY 4.0) license. Users may share, distribute, and adapt the content for any purpose, including commercial use, provided proper credit is given to the authors and the journal.