Derivative
- Japanese
- デリバティブ
- Last reviewed
- September 24, 2026
This is a draft, shown for review before publication.
A derivative is a trade whose profit or loss depends on the price or value of an underlying asset or indicator, such as a stock, a bond, an interest rate, or an exchange rate. Its basic forms are forwards and futures, swaps, and options.
Related terms
Explained in detail
Pages that use this term
- Compounding and Discounting
- Bootstrapping a Yield Curve
- The Multi-Curve Framework
- Probability and Statistics Basics
- Dealers and Brokers
- How Corporates Use Derivatives
- How Institutional Investors Use Derivatives
- How Regional Banks Use Derivatives
- How Hedge Funds Use Derivatives
- Market Size Statistics (BIS Surveys)
- Exchange-Traded vs OTC Derivatives
- Cleared vs Bilateral Trades
- Japanese Exchanges and Listed Products
- Forwards and Futures
- How Swaps Work
- Option Basics: Calls and Puts
- Basket Options
- Quanto Options
- Interest Rate Futures
- Interest Rate Swaps
- Overnight Index Swaps (OIS)
- Overview of Exotic Rate Products
- Constant Maturity Swaps (CMS)
- What Is a Benchmark Rate?
- TORF
- TIBOR
- SOFR
- Lookback, Lockout and Payment Delay
- The Transition from LIBOR
- Fallbacks and Spread Adjustments
- Non-Deliverable Forwards (NDF)
- Overview of Exotic FX Products
- Target Redemption Forward (TARF)
- Equity Index Futures
- Equity Swaps and Total Return Swaps
- Overview of Exotic Equity Products
- Dividend Swaps and Futures
- Credit Default Swaps (CDS)
- Inflation-Indexed JGBs and BEI
- Overview of Commodity Derivatives
- Energy: Crude Oil and Natural Gas
- Metals
- Emissions
- Weather Derivatives
- Property Derivatives
- Freight Derivatives (FFA)
- What Are Structured Products?
- Exchangeable Bonds (EB)
- Equity Index-Linked Notes
- PRDC Notes
- Structured Deposits
- Structured Loans
- No-Arbitrage and Replication
- Risk-Neutral Valuation
- Collateral and Discounting
- CVA and DVA
- FVA and MVA
- Model Calibration
- Monte Carlo Simulation
- Sensitivities: DV01, Vega and Key Rate Sensitivities
- What Is Counterparty Credit Risk?
- Exposure Measures: CE, PFE, EE/EPE and EAD
- Exposure Profiles by Product
- Credit Limit Management
- Overview of the Regulatory Treatment of Counterparty Risk
- Counterparty Risk and XVA
- Funding Variation and Initial Margin
- Handling Margin Calls
- Sourcing and Substituting Collateral
- Derivatives in LCR and NSFR
- Operational Risk in Derivatives
- Settlement Failures and Reporting Errors
- Rogue Trading Cases: Barings, Societe Generale and Others
- Risk-Weighted Assets (RWA)
- The Leverage Ratio
- Capital Valuation Adjustment (KVA)
- Funds Transfer Pricing (FTP)
- The Client Business Flow
- Understanding Client Needs
- KYC and Credit Review
- Proposals and Explanations
- Product Explanations and Pre-Contract Disclosures
- Suitability Checks
- Trade Execution
- Trade Confirmations
- Mark-to-Market Reporting to Clients
- Early Termination
- Front, Middle and Back Office Roles
- Collateral Operations
- Regulatory Reporting
- Accounting Operations
- Responding to Audits and Examinations
- Front-to-Back System Architecture
- Lifecycle Event Data
- End-of-Day Batch Processing
- The ISDA Common Domain Model (CDM)
- Choosing the Booking Entity
- Intragroup Back-to-Back Trades
- Recovery and Resolution Planning
- Resolution stay protocols
- Fair Value Measurement: IFRS 13, ASC 820 and the Fair Value Hierarchy
- Japan's Fair Value Measurement Standard
- CVA and DVA in Accounting
- Hedge Accounting Basics
- Deferral Hedge Accounting under Japanese GAAP
- Hedge Accounting under IFRS 9 and ASC 815
- Embedded Derivatives
- Japanese GAAP vs IFRS vs US GAAP
- Disclosures in the Notes
- Taxation of Derivative Gains and Losses
- Withholding Tax
- Transfer Pricing for Cross-Border Trades
- ISDA Protocols
- Events of Default and Termination Events
- Close-Out Netting
- Overview of Market Infrastructure
- Central Counterparties: JSCC, LCH, CME and Others
- Portfolio Compression
- Portfolio Reconciliation
- Major Electronic Trading Platforms
- The Three Lines Model
- New Product Approval
- Mis-Selling Cases
- Complaints and Dispute Resolution (FINMAC)
- The Financial Instruments and Exchange Act and Derivatives
- The Financial Services Provision Act
- The Commodity Derivatives Transaction Act
- Supervisory Guidelines of the Financial Services Agency
- Suitability and the Duty to Explain
- Overview of Derivatives Regulation in the US
- The Roles of the CFTC and SEC
- The Volcker Rule
- Swap Dealer Registration
- Overview of Derivatives Regulation in the EU and UK
- EMIR
- MiFID II and MiFIR
- UK EMIR
- PRIIPs
- The Basel Framework and Derivatives
- BCBS-IOSCO Margin Requirements for Uncleared Derivatives
- The Fundamental Review of the Trading Book (FRTB)
- The Standardized Approach for Counterparty Credit Risk (SA-CCR)
- The CVA Risk Capital Charge
- Overview of Derivatives Regulation in Asia-Pacific
- Singapore
- China
- South Korea
- Australia
- Market Manipulation and Spoofing
- AML and Sanctions
- Insider Trading
- Best Execution
- The Development of Futures Exchanges
- The Swap Market and ISDA
- A History of Japan's Derivatives Market
- The Collapse of Lehman Brothers (2008)
- The LIBOR Manipulation Scandal
- Other Major Derivatives Losses
- The Metallgesellschaft Loss (1993)
- The Orange County Investment Pool Loss (1994)
- The JPMorgan London Whale Credit Derivatives Loss (2012)
- ESG-Linked Derivatives
- Crypto-Asset Derivatives
- Digitalization: CDM and Tokenization