Futures and Options Markets

13.

Risk Management in Derivatives

13.1.

13.1.1.

13.1.1.1.

Historical Simulation

13.1.1.2.

Parametric Methods

13.1.1.3.

Monte Carlo Simulation

13.1.2.

Expected Shortfall

13.1.3.

13.1.4.

Scenario Analysis

13.2.

13.2.1.

Counterparty Risk

13.2.2.

Settlement Risk

13.2.3.

Credit Exposure Measurement

13.2.4.

Risk Mitigation Techniques

13.2.4.1.

Collateralization

13.2.4.2.

Netting Agreements

13.2.4.3.

Credit Derivatives

13.3.

Operational Risk

13.3.1.

System Failures

13.3.2.

13.3.3.

Process Breakdowns

13.3.4.

Control Mechanisms

13.4.

13.4.1.

Market Liquidity

13.4.2.

Funding Liquidity

13.4.3.

Liquidity Management

13.4.4.

Emergency Procedures

13.5.

13.5.1.

Model Validation

13.5.2.

Parameter Uncertainty

13.5.3.

Model Limitations

13.5.4.

Back-Testing Procedures

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12. Advanced Derivative Instruments

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14. Regulatory Framework and Market Structure