Financial market instruments in case studies Koziegłowy

Financial market is the core of the economy. It has a profound impact on many of its sectors and allows it to fiinction properly. It is due to various financial instruments which are created to fulfiH needs of its participants. They are morę and morę complex and thus better and better tailored to their users' ne­cessities. The book presents some of these products, especially those which are not well developed on the Polish market that is mortgage instruments, foreign exchange forwards, options, credit derivatives and structured products. The aim of its Authors was to show the difference between the Polish and other markets. It was reached by giving these products characteristics and the present state of development in the world markets as well as in Po­land. The book, prepared by economists from the best Polish universities, is devoted to students, scientists as well as to existing and potential investors of the Polish financial market. Being written in English, I am surę it will have a great deal of not only Polish but also foreign readers. Spis treści: Foreword by Izabela Pruchnicka-Grabias 9 Chapter 1Principles of the Law on the Capital Market in the European Union and in Poland - Justyna Maliszewska-Nienartowicz 111.1. Introductory Remarks 111.2. Definitions of Basic Concepts - the Capital Market and the Law on the Capital Market 121.3. Principles of the Law on the Capital Market in the EU 131.3.1. Regulations Concerning Different Sectors of the Capital Market 131.3.2. Basic Characteristics and Principles of the Public Market 171.3.3. Principles of the Regulated Market and Relating to Investment Firms and Services 181.3.4. Basic Characteristics and Principles of the Official Stock-exchange Listing Market 201.4. Principles of the Law on the Capital Market in Poland 211.4.1. Acts on Public Offering, on Trading inFinancial Instruments and on Capital Market Supervision - the Most Important Changes in Comparison with Previous Regulations 211.4.2. Basic Principles of the Polish Capital Market 251.4.2.1. The Principle of the Dematerialisation of Securities and Trading in Securities (Financial Instruments) 251.4.2.2. The Principle of Trading on the Regulated Market 271.4.2.3. The Principle of the Obligatory Intermediation of an Investment Firm Conducting Brokerage Activities 281.4.2.4 The Principle of Administrative Supervision 291.4.3. The Need for Further Development of Polish Regulations on Capital Market 30 Chapter 2Mortgage Financial Instruments in European Countries - Anna Szelągowska 332.1. Covered Bonds 342.2. Structured Covered Bonds 362.3.Residential Mortgage Backed Securities 382.4. Retail Deposits 412.5. Securitisation 422.6. Multi-origination Platforms 422.7. The Covered Bond Systems in Europe 432.8. Case Study of the Polish Mortgage Market 51Chapter 3Foreign Exchange Forward as an OTC Derivatives Market Instrument - Iwona Piekunko-Mantiuk 573.1. The Essence of Forward Contracts 583.2. Using the Forward Transaction to Secure the Open Foreign Exchange Position 603.3. The Global Market of Forward Contracts 623.4. Forward Contract Markets in Selected Countries 663.4.1. Developed Markets 663.4.1.1. Great Britain 663.4.1.2. USA 683.4.2. Emerging Markets 693.4.2.1. Singapore 703.4.2.2. The Czech Republic 723.5. The Polish Foreign Exchange Forward Market 743.5.1. Innovations on the Polish Foreign Exchange Forward Market 743.5.2. Turnover Volume and Structure 753.5.3. Development Perspectives 77 Chapter 4Focus on Options - Izabela Pruchnicka-Grabias 814.1. Risk Factors Associated with Options 824.2. Options Listed on Well-developed Exchanges in the World 834.3. Options in Poland 934.4. Options' OTC Markets in 2001-2006 95 Chapter 5Credit Derivatives in the United States and Poland - Reasons for Differences in Development Stages - Paweł Niedziółka 995.1. Characteristics of Credit Derivatives - Selected Aspects 1005.2. Credit Derivatives Market in the United States 1055.3. Credit Derivatives in Poland -Reasons for Slow Market Development 108 Chapter 6Structured Products - Krzysztof Borowski 1136.1. Structured Products - Origin 1156.1.1. Development of the Structured Products Market 1176.2. Structured Products Classification 1206.2.1. Principal Protected Products 1206.2.2. Single - Stock Hedges 1246.2.3. Other Classification of Structured Products 1246.3. Examples of Structured Products 1276.3.1. Capital Protected Products 1276.3.2. Trackers 1296.3.3. Accelerated Trackers 1316.3.4. Reverse Trackers 1336.3.5. Bonus Trackers 1346.3.6. Discount Trackers 1356.4. Structured Products Listed on the London Stock Exchange (LSE) 1386.4.1. Income Products 1426.4.2. Lock - in Certificates 1446.4.3. Air - bag Certificate 1456.5. Structured Products on the Warsaw Stock Exchange (WSE) 1466.6. Recent and Expected Trends 147 Concluding Remarks by Izabela Pruchnicka-Grabias 149Bibliography 151