Goldman Sachs and Deutsche Bank were claiming success last month for their debut auctions of ‘economic derivatives’ – options on economic indicators. The firms held auctions on October 1 and October 3 for options on the US Department of Labor’s monthly non-farm employment statistic, which was released on October 4. The firms say the auctions created $19 million (notional) of positions.
While a modest amount, the figure helps put to rest the firms’ biggest fear – that there would be no liquidity,
The week on Risk.net, March 10-16 2018Receive this by email