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Innovaciones financieras en América Latina: mercados de derivados y determinantes de la administración de riesgo
[Financial Innovations in Latin America: Derivatives markets and Determinants of Risk Management]

Author

Listed:
  • Ibañez, Francisco
  • Romero-Meza, Rafael
  • Coronado-Ramírez, Semei
  • Venegas-Martínez, Francisco

Abstract

This paper is aimed at examining the theoretical determinants and empirical evidence on the use of derivatives in Latin America for risk management. The contingent claims, the development of their market, and their use, is undoubtedly one of the most powerful financial innovations available to individuals and businesses. It is shown that though Latin American firms use derivatives, there is a lack of research to understand its determinants. The causes and incentives for the development of the Chilean derivatives market are investigated, concluding that its development could not take off in exchanges; however, the OTC market has shown a healthy development. Finally, goals and challenges for Latin American countries are stated and potential research ideas to fill the gap on empirical aspects of risk management in these economies are proposed.

Suggested Citation

  • Ibañez, Francisco & Romero-Meza, Rafael & Coronado-Ramírez, Semei & Venegas-Martínez, Francisco, 2015. "Innovaciones financieras en América Latina: mercados de derivados y determinantes de la administración de riesgo
    [Financial Innovations in Latin America: Derivatives markets and Determinants of Ris
    ," MPRA Paper 63151, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:63151
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Financial innovations derivatives; risk management; Latin America.;

    JEL classification:

    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing

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