Derivatives Market in the USA Suffers

According to the BIS, which was formed in 1930 to regulate the US financial market, there has been a shrinkage in the derivatives market.

Since September 2008, when the Lehman Brothers experienced their grand disaster - a catalyst for the rapid world financial downturn - investors have been less keen on taking on the high-risk climate of the derivatives market.

It is well known that this market - formed of financial instruments based on loans, commodities, currencies, bonds, stocks, interest rates to name but some areas - carries high risks. Gains can be hugely profitable but it is just as easy to make huge losses.

Since the global financial crisis began to take speed, the derivatives market has been blamed for much of the losses and disasters that occurred in the USA.