Sandor Good Derivatives

A Story of Financial and Environmental Innovation
1. Auflage 2012
ISBN: 978-1-118-21649-1
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 640 Seiten, E-Book

Through the eyes of an inventor of new markets, GoodDerivatives: A Story of Financial and Environmental Innovationtells the story of how financial innovation - a concept thatis misunderstood and under attack - has been a positive force inthe last four decades. If properly designed and regulated, these"good derivatives" can open vast possibilities toaddress a variety of global problems. Filled with provocativeideas, fascinating stories, and valuable lessons, it will provideboth an insightful interpretation of the last forty years incapital and environmental markets and a vision of world finance forthe next forty years.
As a young economist at the Chicago Board of Trade, RichardSandor helped create interest rate futures, a development thatrevolutionized worldwide finance. Later, he pioneered the use ofemissions trading to reduce acid rain, one of the most successfulenvironmental programs ever. He will provide unique insights intothe process of creating these new financial products. Coveringsuccesses and failures, the story describes the tireless process ofinventing, educating and creating support for these new inventionsin places like Chicago, New York, London, Paris and how it isunfolding today in Mumbai, Shanghai and Beijing.
The book will tell the story of the creation of the ChicagoClimate Exchange and its affiliated exchanges (European ClimateExchange, Chicago Climate Futures Exchange and Tianjin ClimateExchange, located in China). The lessons learned in these marketscan play a critical role in effectively addressing global climatechange and other pressing environmental issues. The author arguesthat market-based trading systems are a far more effective means ofreducing pollutants than "command-and-control".Environmental markets may ultimately help to find solutions toissues such as rainforest destruction, water problems andbiodiversity threats.
Written in an engaging, narrative style, Good Derivativeswill be of interest to both practitioners and general readers whowant to better understand the creative process of financialinnovation. In the middle of so much distrust of markets, it isalso a recipe of how transparent, well-regulated markets can be aforce for good in the environmental, health, and social areas.

Autoren/Hrsg.

Sandor, Richard L

Weitere Mitwirkende

Coase, Ronald

Inhaltsverzeichnis

Foreword ix
Preface xiii
Acknowledgments xxi
Chapter 1 The Early Years 1
Chapter 2 Trying to Change the World 23
Chapter 3 The Berkeley Years 47
Chapter 4 The Chicago Board of Trade Years: The CommodityFutures Contract 65
Chapter 5 The Chicago Board of Trade Years: Financial FuturesContract 89
Chapter 6 Educating Users and Building the Market 125
Chapter 7 Treasury Bond and Note Futures 139
Chapter 8 The Decade of the Eighties 167
Chapter 9 Globalizing Chicago Exchanges 191
Chapter 10 Environmental Finance 205
Chapter 11 Blame It on Rio 223
Chapter 12 The Beginning of the Entrepreneurial Years 239
Chapter 13 You're Gonna Trade What? 265
Chapter 14 From the Pit to the Box 291
Chapter 15 Conceiving a New Kind of Exchange 313
Chapter 16 The Twenty-First Century Lighthouse 327
Chapter 17 CCX Market Architecture 351
Chapter 18 Chicago Climate Exchange 375
Chapter 19 The Rise of the Chicago Climate Exchange 393
Chapter 20 The Fall of the Chicago Climate Exchange 413
Chapter 21 The Chicago Climate Futures Exchange 429
Chapter 22 The European Climate Exchange 453
Chapter 23 India 479
Chapter 24 Opening New Markets in China 501
Chapter 25 Good Derivatives 533
Appendixes 559
Acronyms 575
Glossary 577
Index 593

Über Autor(innen)

Richard L. Sandor is Chairman and Chief Executive Officer of Environmental Financial Products LLC, which specializes in inventing, designing, and developing new financial markets with a special emphasis on investment advisory services. EFP was established in 1998 and was the predecessor company and incubator to the Chicago Climate Exchange (CCX), the European Climate Exchange (ECX), and the Chicago Climate Futures Exchange (CCFE). Dr. Sandor was honored by the City of Chicago for his contribution to the creation of financial futures and his universal recognition as the "father of financial futures." In October 2007, he was honored as one of Time magazine's "Heroes of the Environment" for his work as the "Father of Carbon Trading." Dr. Sandor is a Distinguished Professor of Environmental Finance at Guanghua School of Management at Peking University and a Lecturer in Law at The University of Chicago Law School.