ECB's Trichet warns on derivatives

The president of the European Central Bank (ECB), Jean-Claude Trichet, has warned about the risks that certain exotic derivatives pose to the international financial system.

Speaking at the World Economic Forum in Davos last month, Trichet voiced concern at the way risk was being distributed through ever-more complex derivatives. He spoke of central banks' frustrations at evaluating new instruments, and said dealers ought to brace themselves for a possible repricing of such assets in view of

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