Business Times

Derivatives anideal product in post-war economy

Derivatives are an ideal stock market instrument to manage portfolio in the post-war economy in Sri Lanka, according to an expert. “Derivatives are a good way to manage stock market risk, because in equity (shares) the investors diversify their portfolios, but they cannot minimize the risk satisfactorily with this kind of equity.

Derivatives are different, in that since they are contracts, a certain risk averse person can pass on that risk in their portfolio to another who might want to take on that chance,” Dr Hareendra Dissa Bandara, Director Financial Services Academy (FSA), the training arm of the Securities and Exchange Commission (SEC) told the Business Times on the sidelines of the regional conference on derivatives on Friday.

The 3-day conference organised by the FSA which concluded on Friday saw some of the industry’s best from India discussing exchange traded funds, securitization, products and pricing in forwards and futures, how market intermediaries use futures such as hedging and arbitrage strategies, investigation and enforcement practices pertaining to derivatives and clearing, Settlement and risk management in derivatives.

Dr Dissa Bandara said that this conference was the first step in creating awareness and educating the stock market professionals in derivatives. “Since the local market is similar (in thinking patterns, etc) in some characteristics to the Indian market we sought expertise for this seminar from the Indian experts. Also we invited some Pakistani experts for the same reason,” he said.

He said last year the SEC facilitated derivatives through the SEC Act and now the onus is on the brokering community to take it up and be creative.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
CSE will remain small market
SLIC gets Central Bank sanction to buy over 10% of NDB
CB/EPF stakes in banks: Conflict of interests?
Top banks, Indian firm aim for broking licenses
No passengers to Jaffna? Airlines withdraw
Finance firms may not be attractive in the long –term
Change at the top
Comment - New strategy to attract investments
Feature - Longevity risk: Death of retirement?
Feature - Additional income from rubber plantations and new carbon negative concept
Singer rebrands to ‘Singer Homes’ from ‘Modern Homes’
Derivatives anideal product in post-war economy
Seylan Bank AGM held on Friday
5,000 kgs of tea withdrawn from domestic market last week
UNP puts its economic view online
Computer firm Ezy aims to raise Rs 100 mln by 2015 for its new racing segment
SL Convention Bureau promotion in the Far East
Hedging Cases: Deutsche Bank claim in international arbitration in July
Knowledge Conglomerate to launch ventures
DHL Keells positive on Sri Lankan growth
Credit Card helps eliminate risk in carrying cash
Globalisation led to 'knowledge economy' : Chief Justice
Solid response to NTB’s 2010 warrants (shares)
Sri Lankans have limited access to their own seas-industrialist
AMW Obtains IMI Accreditation – first in South East Asia
Taj Hotel group opens regional skills centre in Colombo
SLT ranked number one in Top 10 competition
HSBC cash for special clients thro’ Keells Super
Sri Lankan economy set to grow –Asian investors told
Fiscal deficit causes IMF to delay loan
Groundwork of pruning the cabinet gets underway
Bank of Ceylon to open 31 more branches in the North and East
Lumiére Residencies receives CMA certification
IFS signs US-government prime contractor Sabreliner
Eight Kurunegala poultry farmers receive assistance
Israel to 'enhance' economic ties with SL
Heritance Ahungalla organises Six-a-Side Beach Cricket Tournament
Dialog receives award for M-waste Management
Corporate climate responsibility - Case for a green economy
Former Malaysian PM Mahathir here in June for business event
Only 0.14% of SL GDP towards R&D, others 1.5%
Column - The office: Paperless and work on the move
New SKAL committee
Fitch affirms rating on Singer
Lanka Ceramic sales pick up after showroom upgrade
Global Finance picks Commercial Bank as Sri Lanka’s best for 12th year in a row
Oracle solutions for mid-sized Sri Lankan companies

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution