Economic Derivatives - Interest Rates - Markets - ICAP.com

Economic Derivatives

Economic derivatives provide a direct view and a means of hedging portfolio risk on macro-economic statistics.  They are conducted via a Universal Dutch Auction framework. They are options on economic statistics: US non-farm payrolls, ISM, retail sales, eurozone HICP and US CPI.  They provide the ability to directly express views without basis risk - avoiding the problem of predicting the number accurately but misjudging the market impact.  They also allow risk managers to effectively hedge against short-term volatility in longer-term positions and enable position-takers to profit fully from their views.

For further information go to www.icapenergy.com/us/markets/Auctions.aspx