a changing landscape

Derivatives debate

The requirement for companies to mark to market derivatives they use in their hedging activities is set to alter appreciably the landscape in which hedge fund managers who trade in and profit by derivatives products operate.

The EU requirement that EU-listed companies mark derivatives at ‘fair value‘ and take changes in valuation into account in their profit and loss accounts comes as a result of a number of International Accounting Standards due to take effect over the coming two years.

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