Interest rate option is a derivative financial instrument.

Let's take a derivative instrument like an inflation swap.

Though I wouldn't deny that liquid derivative instruments are also in short supply.

It is possible, even now, of course, to try to offer the market a sufficiently sophisticated derivative instrument, but it wouldn't find any takers.

As long as price changes are continued, no great harm is done except perhaps higher volatility, which, in turn, increases the demand for derivative instruments.

This mutual offset system involving identical contracts was a major step toward a 24 hour trading day in derivative instruments.

That is why they are also called offshore derivative instruments.

A lot of people have focused on program trading and the derivative instruments.

In the past, derivative instruments played an important role by transferring risk in the economy.

Since the derivative instruments are required to be recorded at fair value, these adjustments must be made to the forward contract listed on the books.