FUTURES AND OPTIONS MARKETS - THEIR NEW ROLE IN EASTERN-EUROPE

This paper addresses the new and potential role of futures and options markets in the liberalizing economies of Eastern Europe. The paper begins with a discussion of the value and utility of such markets to the overall economy. The paper then examines the advantages of exchange-based markets and considers the barriers to development and use of derivative markets in European Europe. Finally, we turn to potential for use of Western markets as well as the development of local and regional commodities markets in Eastern Europe.