- Originally financial derivatives were a kludge, spot-welded to old-school financial markets. Markets needed a quick answer to risk-management problems following the collapse of Bretton Woods.
- Fifty years of growth is enough to ratify the intrinsic value of financial futures and to justify their full integration with spot markets.
- Joint cash and futures trading on one exchange will dramatically reduce duplicative inter-market arbitrage while expanding both cash and futures market functionality.
- Benefits include greater market safety and soundness, and reduced transaction costs in trading both instruments.
- Adding cash instruments designed to serve the same end-users as futures will dramatically expand the utility of both markets for risk managers.
For further details see:
Obsolete Financial Derivatives