The Development and Risk Management of Financial Options Market

The development and risk management of financial options market is a complex and dynamic topic that involves various aspects, such as the role and strategies of market makers, the measurement and management of market risk, the impact of exchange rate regimes, and the regulation and supervision of financial markets. Here are some web search results that provide more information on this topic:

• Market making and risk management in options markets: This article examines the personal trading strategies of member proprietary traders in the natural gas futures options market. It analyzes how they manage their inventory holding, rebalancing, and volatility risk exposures, and how they are influenced by inflation, fiscal deficits, foreign exchange reserves, and capital controls.

• Measuring and Managing Market Risk: This article provides an overview of the process of measuring and managing market risk, which is the risk that arises from movements in stock prices, interest rates, exchange rates, and commodity prices. It discusses the concept and methods of value at risk, and the advantages and limitations of different approaches to estimating value at risk.

• Market Risk and Financial Markets Modeling: This book explores the flaws and challenges of models, measures and theories that failed to provide forward-looking expectations for upcoming losses originated from market risks. It covers topics such as market microstructure, volatility modeling, extreme value theory, and systemic risk.

• Emerging Trends in FX Options Trading and Risk Management: This article discusses some of the headwinds facing FX option traders, such as low volatility, regulatory changes, and market fragmentation. It also suggests how expanding their repertoire to include both OTC and listed products can help overcome those challenges and capture new opportunities.

• Financial Regulation and Risk Management in Development Banks: This book examines the role and challenges of development banks in promoting financial inclusion and sustainable development. It analyzes the evolution and impact of the Basel Agreements framework, and the risk management practices and regulatory policies of development banks.