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This is the second week of DW's Learning Curve coverage of two consultative papers issued by The Basel Committee on Banking Supervision.

The Basel Committee on Banking Supervision has produced two further consultative papers on individual aspects of the new capital adequacy framework.

Global derivatives markets are facing change on an unprecedented scale following the introduction of business-to-business (B2B) derivative exchanges.

In June 1998, after long years of debate, the Financial Accounting Standards Board issued its new standard on derivatives, Statement No. 133, Accounting for Derivative Instruments and Hedging Activities.

The idea that it is possible to purchase a foreign exchange option without paying a premium is so attractive that skepticism would be justified.

In the last two decades, risk management has expanded its role from "in-house police" to a role concentrating on overall portfolio management.

This is the second part of an article on extreme Value-at-Risk. The first part ran in Derivatives Week's March 6 issue.

The analysis of off-market (i.e. non-par) swaps requires a set of discount factors with the effects of regular swap coupon payments removed.

Risk managers are primarily concerned with the risk of low-probability events that could lead to catastrophic losses.

Whilst there has been much debate on the strengths and weaknesses of different ways to estimate value at risk (VaR), there has been relatively little debate on the inherent weaknesses of VaR itself as a risk measure.

The factors that contribute to a bond futures valuation versus the bond curve have different impacts on the future pricing versus the swap curve.

The opening up of the Indian markets has been accompanied by the liberalization of regulations relating to the Indian foreign exchange and money markets.