Using derivatives is now a common way to redistribute the risks of doing business.

The bank uses bonds and currencies, rather than derivatives, to trade for its own account.

Other banks use derivatives as investments and to reduce their vulnerability to changes in interest rates.

That said, it is no longer companies putting up the fight, but rather banks and financial institutions who use derivatives mostly for hedging.

A fund's prospectus will disclose whether and how it may use derivatives.

The banks say the rule will confuse investors and scare off some companies that would benefit from using derivatives.

To be sure, a few mutual fund managers have used derivatives successfully.

You accept the standard Wall Street line that it is possible to use derivatives or to borrow to reduce investment risk.

"We know from reviews of prospectuses that many funds have the authority to use derivatives."

In general, she added, Wisconsin had used derivatives to manage and offset risk.