New investment trends over the counter market of financial derivative instruments
Author: Mirkin Y.Moiseevich, Sava Dimov (Financial University under the Government of the Russian Federation, Burgas Free University)
Keywords: over the counter market, over the counter (off-exchange) trade, options contracts, most modem tendencies in the off-exchange derivative trade, development of the credit derivatives market, on-line option pricing, automatic programming of price modelsIn the last decade the development of the exchange trade has been accompanied by competition on the off-exchange market (Over the Counter Market). Internet has changed into a virtual universal market area, on which every firm can open its virtual shop and begin trading. Obviously, a similar on-line market will facilitate the information transfer for the corporations; it will also make the financial transactions faster and more effective. Its real advantage is the presentation of completely modem ways and mechanisms to the business, for example the establishment of videoconference contacts among trade partners. The specialists notice the following most modem tendencies in the off-exchange derivative trade: Lag in the off-exchange business; Development of the credit derivatives market; On-line option pricing; Automatic programming of price models; Management of the risk software - a product of "Rich" and "�-Tech". The conclusion, that the off-exchange option trade is a curious challenge for a considerable number of investors.