The Development of OTC Derivatives Markets and Counterparty Risk Management

摘要

In the international financial markets, the growth in Over-the-counter (OTC) derivatives has been phenomenal in recent years. This paper reviews the recent development of the OTC derivatives market, indicates a rapid expansion of the market, implies that we should pay more attention to the new changes of situation, describes the features of OTC derivatives market, argues that the individually customized OTC products involves a different risk management approach. The paper highlights the measurement and management of counterparty risk which is the main risk in the OTC derivatives market.