1.6 Derivatives markets Exchange(交易所) traded Traditionally exchanges have used the open. outcry system, but increasingly they are switching to electronic trading Contracts are standard and there is virtually no credit risk Over-the-counter(OTC,场外市场) A computer-and telephone-linked network of dealers at financial institutions, corporations and fund managers Contracts can be non-standard and there is some small amount of credit risk Options, Futures, and Other Derivatives, 4th edition g 2000 by John C Hull Tang Yincai, C 2005Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2005 1.6 Derivatives Markets • Exchange (交易所)traded – Traditionally exchanges have used the open￾outcry system, but increasingly they are switching to electronic trading – Contracts are standard and there is virtually no credit risk • Over-the-counter (OTC，场外市场) – A computer- and telephone-linked network of dealers at financial institutions, corporations, and fund managers – Contracts can be non-standard and there is some small amount of credit risk