Recent developments in derivatives markets - Implications for Central and Eastern European countries in the perspective of EU accession

This paper examines the major developments in the international derivatives markets over the last ten years, including rapid expansion of the trading volume and growth in product range. After reviewing the last evolution regarding the growth of trades, the paper discusses the latest financial innovations in-this area - credit derivatives and weather derivatives. A particular emphasis is given to the growth of derivatives trading volume in Central and Eastern European countries in their attempt to build sound and viable financial systems in the context of European Union accession. The paper focuses on the current use of derivatives in Romania by comparison with other countries from Central and Eastern Europe such us Poland and Hungary.