Regulating the trade of derivative contracts as a way of stabilizing the financial system

Bc. Iva Hajdaragiq

Master's thesis

Abstract:

This thesis aims to present the progress of the derivatives market reforms declared on the Pittsburgh Summit in 2009, so as to determine whether this market has become more secure, transparent and resilient over the last decade. This is not just for the sake of market participants, but in the context of the security of the financial system in general. During the period of the financial crisis of 2007-2008, the derivatives market was considered as the cause or at least an aggravation of the crisis. The authorities also shared this view as this market was declared as a focus of G20 reforms in function of the stability of the financial system. After a decade since the reform plan of the Pittsburgh Summit for this market, it is necessary to analyze the progress of these reforms and to understand if the regulation of the derivatives market has brought the intended results. This work is realized using a qualitative methodology. The timeline chosen for this analysis is 2009-2018, not including the Coronavirus pandemic years as its impacts on the financial environment require another deep analysis. Although, I have tackled a bit the current situation to give an overall picture.

Keywords

derivatives, FSB, reforms

Language used: English

Date on which the thesis was submitted / produced: 31. 3. 2022

Thesis defence

• Supervisor: doc. Ing. Lubomír Civín, CSc. MBA

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management