Derivative instrument and Competition & Markets Authority: Difference between pages

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A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).
(CMA).


Derivative instruments are widely used by non-financial corporates for hedging purposes.
The UK government department responsible for promoting competition, within and outside the UK, for the benefit of consumers.


The CMA:
*Inquires into mergers, markets, trade practices and the regulation of the major regulated industries under competition law; and
*Enforces consumer protection legislation to tackle practices and market conditions that restrict consumers' choice.


<span style="color:#4B0082">'''Example'''</span>


A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.  
The CMA was formed by the merger of the Competition Commission with certain responsibilities of the Office of Fair Trading.


The value of the share option derives from the current price of the related underlying share relative to the option strike price.


==See also==
* [[Antitrust law]]
* [[Challenger bank]]
* [[Competition]]
* [[Federal Trade Commission]]
* [[Financial Conduct Authority]]  (FCA)
* [[Joint Regulatory Oversight Committee]]  (JROC)
* [[Merger]]
* [[Prudential Regulation Authority]]  (PRA)
* [[Regulation]]
* [[Supervision]]


== See also ==
[[Category:Compliance_and_audit]]
* [[CertFMM]]
* [[Commodity risk]]
* [[CP]]
* [[Credit support annex]]
* [[Embedded derivative]]
* [[ETD]]
* [[FC]]
* [[Fixing instrument]]
* [[Hedge fund]]
* [[Hedging]]
* [[IR]]
* [[ISDA Master Agreement]]
* [[Maturity]]
* [[Notional principal]]
* [[Option]]
* [[Outright]]
* [[Strike price]]
* [[Tracker fund]]
* [[Transfer]]
* [[Underlying]]
* [[Underlying asset]]
* [[Underlying price]]
* [[XVA]]
 
 
===Other links===
*[http://www.treasurers.org/node/8599  Masterclass: Derivatives, The Treasurer, December 2012]
 
*[http://www.treasurers.org/node/7849 Use and Misuse of Derivatives, Will Spinney, ACT 2012]
 
[[Category:Risk_frameworks]]

Latest revision as of 12:50, 20 January 2024

(CMA).

The UK government department responsible for promoting competition, within and outside the UK, for the benefit of consumers.

The CMA:

  • Inquires into mergers, markets, trade practices and the regulation of the major regulated industries under competition law; and
  • Enforces consumer protection legislation to tackle practices and market conditions that restrict consumers' choice.


The CMA was formed by the merger of the Competition Commission with certain responsibilities of the Office of Fair Trading.


See also

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