Cannabis genetics play a crucial role in determining the unique characteristics and effects of different cannabis strains. As the cannabis industry continues to grow, it has become increasingly important for both medical and recreational users to understand the genetics behind the plants they consume. In this comprehensive guide, we will delve into the world of cannabis genetics and explore some of the best strains available today. From legendary classics to innovative hybrids, these strains showcase the diversity and potential of cannabis genetics.

Understanding Cannabis Genetics:

Cannabis genetics refer to the specific combination of genes that determine the plant's traits, such as growth patterns, cannabinoid profiles, aroma, and flavor. Cannabis is typically classified into three main subspecies: Cannabis sativa, Cannabis indica, and Cannabis ruderalis. Each subspecies has unique characteristics and is often bred together to create hybrid strains that offer a combination of desirable traits.

Classic Strains:

Northern Lights: One of the most iconic strains, Northern Lights is renowned for its potent relaxation and euphoric effects. It originated from the Afghani and Thai landrace strains, resulting in a well-balanced hybrid that offers a soothing body high and a clear-headed mental experience.

Skunk #1: Skunk #1 is a legendary strain that has paved the way for countless hybrid varieties. Known for its pungent aroma and powerful cerebral effects, Skunk #1 is a genetic cross of Afghani, Acapulco Gold, and Colombian Gold. It offers a stimulating high combined with a relaxing body buzz.

Haze: Haze strains are revered for their energetic and creative effects. These sativa-dominant hybrids often feature a combination of South American, Thai, and Indian landrace genetics. Haze strains are cherished for their uplifting properties, making them popular among artists, musicians, and those seeking a boost of motivation.

High-CBD Strains:

CBD-rich strains have gained significant popularity in recent years due to their potential therapeutic benefits without the psychoactive effects associated with THC. Some notable high-CBD strains include:

Charlotte's Web: Developed specifically for its high CBD content, Charlotte's Web gained international attention as a treatment for epilepsy. It contains minimal THC and offers a gentle, calming effect alongside potential therapeutic properties.

ACDC: ACDC is a sativa-dominant strain known for its remarkably high CBD to THC ratio. It provides a relaxed and clear-headed experience, making it suitable for daytime use. ACDC has gained recognition for its potential analgesic and anti-inflammatory effects.

Hybrid Innovations:

Hybrid strains have opened up a world of possibilities by combining the best traits of different subspecies. Here are some noteworthy hybrid innovations:

Girl Scout Cookies (GSC): GSC is a popular hybrid that blends Durban Poison and OG Kush genetics. It offers a sweet and earthy flavor profile along with potent euphoric and relaxing effects. GSC has inspired Nasha Genetics a range of "Cookie" strains that continue to captivate cannabis enthusiasts.

Gorilla Glue #4: Known for its sticky resin production, Gorilla Glue #4 is a cross between Chem's Sister, Sour Dubb, and Chocolate Diesel. It delivers heavy-hitting euphoria and relaxation, making it a favorite among experienced users seeking powerful effects.

Landrace Strains:

Landrace strains are cannabis varieties that have developed naturally in specific regions, adapting to the local environment over time. These strains often possess unique characteristics and provide a glimpse into the plant's origins. Some notable landrace strains include:

Afghani: Originating from the Hindu Kush mountain range, Afghani is a pure indica strain with a reputation for its relaxing and sedating properties. It serves as a foundation for many popular indica-dominant hybrids.

Durban Poison: Hailing from South Africa, Durban Poison is a pure sativa strain renowned for its uplifting and energizing effects. It offers a sweet and spicy aroma and is highly regarded among connoisseurs for its cerebral stimulation.

Conclusion:

Understanding cannabis genetics is essential for both growers and consumers who seek specific effects and flavors from their cannabis strains. From classic strains that have stood the test of time to innovative hybrids and CBD-rich cultivars, the world of cannabis genetics offers a diverse range of options to suit every preference. By exploring the genetic makeup of different strains, users can make informed choices and find the cannabis genetics that align with their desired experiences and therapeutic needs.

When it comes to buying or selling property in North Wales, engaging with a reputable estate agent can greatly simplify the process. Estate agents act as intermediaries, facilitating property transactions between buyers and sellers. They possess extensive knowledge of the local real estate market and can provide valuable guidance and support throughout the entire process. In this guide, we will explore the role of estate agents in North Wales and provide an overview of some of the prominent agencies operating in the region.

The Role of Estate Agents:

Estate agents play a crucial role in the real estate industry. They act on behalf of clients who wish to buy, sell, or rent properties. Some key responsibilities of estate agents include:

Property Valuation: Estate agents determine the market value of a property based on various factors such as location, size, condition, and current market trends.

Property Marketing: They create effective marketing strategies to promote properties to potential buyers. This may include listing properties on their website, utilizing social media, and organizing open houses.

Negotiation: Estate agents are skilled negotiators who work to secure the best possible price for their clients. They facilitate communication between buyers and sellers to reach mutually beneficial agreements.

Documentation and Legalities: Estate agents handle the paperwork involved in property transactions, ensuring that all legal requirements are met and documentation is accurately completed.

Choosing an Estate Agent in North Wales:

Selecting the right estate agent is crucial to the success of your property transaction. Here are some factors to consider when choosing an estate agent in North Wales:

Reputation and Experience: Look for an estate agent with a solid reputation and a wealth of experience in the local market. Reading online reviews and seeking recommendations from friends or family can provide insights into an agent's reliability and professionalism.

Local Market Knowledge: An estate agent familiar with the North Wales market will have a better understanding of property values, desirable neighborhoods, and market trends. Their expertise can help you make informed decisions.

Services Offered: Consider the range of services offered by an estate agent. Some agencies provide additional services such as property management or financial advice, which can be beneficial if you require such assistance.

Fees and Contracts: Inquire about the fees charged by the estate agent and the terms of their contract. Ensure that you fully understand the costs involved and the duration of the agreement before making a commitment.

Prominent Estate Agents in North Wales:
Here are some notable estate agents operating in North Wales:

Williams & Goodwin: With multiple branches across North Wales, Williams & Goodwin is a prominent estate agency known for its excellent customer service and extensive local knowledge. They offer a comprehensive range of services, including sales, lettings, and property management.

Dafydd Hardy: Established in 1992, Dafydd Hardy is a reputable estate agent serving North Wales. They have a strong online presence and a team of experienced agents who provide personalized and professional services to clients.

Beresford Adams: With a long-standing presence in North Wales, Beresford Adams has built a reputation for its reliability and expertise. They offer a wide range of services, including residential and commercial sales, lettings, and mortgage advice.

Peter Large: Operating across North Wales, Peter Large is a family-run estate agent that has been serving the region since 1992. They have a dedicated team of professionals who offer a comprehensive range of property services.

Tips for Working with Estate Agents:

To ensure a smooth and successful property transaction, consider the following tips when working with estate agents:

Clear Communication: Maintain open and honest communication with your estate agent. Clearly articulate your needs, preferences, and budget to help them find suitable properties or attract the right buyers.

Regular Updates: Stay informed about the progress of your property transaction. Request regular updates from your estate agent and be proactive in seeking any necessary clarifications.

Viewing Properties: When viewing properties, provide feedback to your estate agent regarding your likes, dislikes, and concerns. This feedback will help them refine their search and identify properties that better meet your requirements.

Negotiation Strategy: Trust your estate agent's expertise when it comes to negotiation. They can provide guidance on making reasonable offers or counteroffers, based on their knowledge of the local market.

Conclusion:

Engaging with a reputable estate agent in North Wales can greatly simplify the process of buying or selling a property. Their expertise, local market knowledge, and support throughout the transaction can ensure a successful outcome. By considering the factors discussed in this guide and researching prominent estate agents in the region, you can make an informed decision and proceed confidently with your property transaction in letting agents North Wales North Wales.

Office reviews play a crucial role in shaping a positive work environment and fostering employee satisfaction. By providing valuable feedback, office reviews enable organizations to identify strengths, address weaknesses, and implement necessary improvements. In this comprehensive guide, we will explore the significance of office reviews, discuss the benefits they offer to both employees and employers, and provide practical tips on conducting effective office reviews. Whether you are an employee seeking to provide constructive feedback or an employer looking to enhance your workplace, this guide will equip you with the knowledge to navigate the realm of office reviews successfully.

Understanding the Importance of Office Reviews

Office reviews are essential for several reasons. Firstly, they serve as a platform for employees to express their thoughts, concerns, and suggestions, fostering a culture of open communication. Secondly, office reviews provide valuable insights into the employee experience, helping organizations identify areas of improvement and implement positive changes. Moreover, by encouraging regular reviews, employers demonstrate their commitment to employee well-being and development. By understanding the importance of office reviews, both employees and employers can unlock the potential for a more productive and harmonious workplace.

Benefits of Office Reviews

Office reviews offer a range of benefits that contribute to the success of both individuals and organizations. For employees, participating in office reviews can lead to increased job satisfaction, improved work-life balance, and enhanced personal growth. Honest feedback and constructive criticism provided during office reviews empower employees to make meaningful contributions, address challenges, and develop professionally. Additionally, regular reviews create a sense of trust and transparency, fostering a positive work culture that promotes collaboration and engagement.

On the other hand, employers benefit greatly from office reviews. These reviews provide organizations with a holistic view of their strengths and weaknesses, enabling them to develop tailored strategies to optimize productivity and employee satisfaction. Office reviews also serve as a means of identifying high-performing employees, recognizing their efforts, and providing appropriate rewards or growth opportunities. Furthermore, by addressing any concerns raised during the reviews, employers can effectively mitigate issues before they escalate, reducing turnover rates and fostering employee loyalty.

Conducting Effective Office Reviews

To conduct effective office reviews, it is crucial to establish a well-defined process that promotes transparency, confidentiality, and fairness. Here are some key steps to consider:

Define the Purpose: Clearly communicate the objectives and expectations of the office review process to employees. Establish a constructive tone that encourages open dialogue and emphasizes the importance of feedback in driving positive change.

Collect Feedback: Employ a variety of feedback collection methods, such as anonymous surveys, one-on-one discussions, or online platforms, to ensure employees feel comfortable expressing their opinions. Provide specific prompts to guide employees in providing valuable feedback.

Create Actionable Metrics: Develop clear evaluation criteria that align with the organization's goals and values. These metrics should focus on both individual and team performance, as well as factors like work environment, leadership, and employee well-being.

Maintain Confidentiality: Assure employees that their feedback will remain confidential and anonymous if desired. This confidentiality fosters trust and encourages honest feedback from employees who may be hesitant to express concerns openly.

Provide Timely Feedback: Ensure that feedback is promptly shared with employees to maintain a sense of continuity and demonstrate the value placed on their input. Constructive feedback should highlight strengths, identify areas for improvement, and offer suggestions for growth.

Develop Action Plans: Collaborate with employees to create action plans that address the areas identified for improvement. These plans should be specific, measurable, achievable, relevant, and time-bound (SMART), and should involve clear responsibilities and deadlines.

Implement Changes: Encourage management to actively support the implementation of necessary changes and initiatives resulting from office reviews. Communic these changes to employees, emphasizing the reasons behind them and the potential positive impact on the work environment.

Monitor Progress: Regularly assess the progress of implemented changes and measure their impact on employee satisfaction and performance. This ongoing monitoring allows for adjustments and fine-tuning to ensure continuous improvement.

Provide Feedback Loop: Close the feedback loop by sharing updates with employees on the progress made based on their feedback. This demonstrates that their input is valued and reinforces the idea that office reviews lead to tangible improvements.

Follow-Up Reviews: Schedule regular follow-up reviews to assess the effectiveness of implemented changes and gather further feedback. These reviews allow organizations to track long-term progress and address any emerging issues.

Overcoming Challenges in Office Reviews (300 words)
While office reviews offer numerous benefits, they can also present challenges that need to be addressed. Some common challenges include:

Resistance to Feedback: Employees or managers may be resistant to receiving or providing feedback due to fear, pride, or discomfort. Encourage a culture of openness and ensure that feedback is viewed as a constructive tool for growth and improvement.

Lack of Follow-Through: If feedback is not acted upon or changes are not implemented, employees may lose trust in the review process. It is crucial for organizations to prioritize the implementation of meaningful changes based on feedback received.

Bias and Subjectivity: Reviews may be influenced by biases or personal opinions. To mitigate this, establish clear evaluation criteria, provide training on unbiased feedback, and ensure multiple perspectives are considered.

Insufficient Resources: Organizations may face resource limitations when it comes to implementing changes suggested during office reviews. Prioritize and allocate resources strategically, focusing on initiatives that will have the most significant impact Office Reviews on employee satisfaction and organizational performance.

Conclusion

Office reviews are powerful tools that can drive positive change, enhance employee satisfaction, and improve overall workplace dynamics. By understanding the importance of office reviews, embracing a culture of feedback, and implementing effective review processes, organizations can unlock their full potential and foster an environment of continuous improvement. Remember, successful office reviews are built on open communication, confidentiality, actionable feedback, and a commitment to acting upon the insights gained. By investing in office reviews, organizations invest in their most valuable asset—their employees—and set the stage for long-term success.

In the highly competitive hospitality industry, having high-quality visuals of your hotel is essential for attracting potential guests. Hotel photography plays a crucial role in showcasing the unique features and ambience of your property, helping to entice visitors and drive bookings. In this comprehensive guide, we will explore the key aspects of hotel photography, including equipment, composition, lighting, staging, and post-processing techniques, to help you capture stunning images that effectively market your hotel.

Understanding the Importance of Hotel Photography

Hotel photography is more than just capturing images; it is about telling a visual story that highlights the unique selling points of your property. High-quality photographs can create a strong first impression and significantly impact potential guests' decision-making process. They play a pivotal role in conveying the atmosphere, amenities, and overall experience your hotel offers.

Essential Equipment for Hotel Photography

To achieve professional-quality hotel photographs, it is crucial to have the right equipment. While professional-grade cameras and lenses are ideal, advancements in technology have made it possible to capture stunning images with high-end smartphones as well. Consider investing in the following:

Camera:
Choose a camera with manual control options, interchangeable lenses, and a high-resolution sensor to capture detailed images.

Lenses:
Wide-angle lenses (around 16-35mm) are widely used in hotel photography as they provide a broader field of view, allowing you to capture more of the scene.

Tripod:
A sturdy tripod is essential for capturing sharp images, especially in low-light situations or for long exposures.

Remote Shutter Release:
Using a remote shutter release or timer helps eliminate camera shake when capturing long exposures or bracketed shots.

Composition and Framing
Composition is a fundamental aspect of hotel photography. It involves carefully arranging elements within the frame to create visually pleasing and impactful images. Consider the following guidelines:

Rule of Thirds:
Divide the frame into a 3x3 grid and position key elements along the gridlines or at the intersections to create balance and visual interest.

Leading Lines:
Use architectural lines or natural features to lead the viewer's eye into the image, directing attention towards the subject.

Symmetry:
Emphasize symmetry in architectural details, such as hallways or doorways, to create visually appealing and balanced compositions.

Perspectives:
Experiment with different angles and heights to showcase unique aspects of the hotel's architecture, interiors, and amenities.

Mastering Lighting Techniques
Lighting is a crucial element in hotel photography, as it sets the mood and highlights the property's features. Consider the following techniques to achieve optimal lighting:

Natural Light:
Utilize natural light whenever possible, as it can create a warm and inviting atmosphere. Shoot during the golden hours (early morning or late afternoon) to capture soft, flattering light.

Interior Lighting:
Familiarize yourself with the different types of artificial lighting within the hotel, such as ambient, accent, and task lighting. Adjust the white balance settings accordingly to maintain accurate colors.

HDR Photography:
High Dynamic Range (HDR) photography involves capturing multiple exposures of the same scene and blending them to retain details in both shadows and highlights. This technique is particularly useful in situations with extreme contrast.

Off-Camera Flash:
Use off-camera flashes or portable strobes to supplement or modify existing lighting conditions. This technique helps to control shadows and create a well-balanced exposure.

Staging and Styling
Presenting hotel spaces in an appealing and inviting manner can greatly enhance the visual impact of your photographs. Follow these tips for effective staging and styling:

Clean and Declutter:
Ensure that all areas are clean and free of clutter. Remove any unnecessary items or distractions that may divert attention from the main subject or focal point.

Bed Interieurfotografie Baden-Baden and Linens:
Make sure the beds are neatly made with crisp, fresh linens. Fluff pillows and arrange them in an inviting manner.

Props and Accessories:
Add strategic props like flowers, books, or a cup of coffee to create a sense of comfort and relaxation. Use accessories that complement the hotel's aesthetic and ambiance.

Seating Areas:
Arrange seating areas to create a cozy and welcoming atmosphere. Use cushions, throws, and decorative elements to add texture and interest.

Dining Spaces:
Set dining tables with elegant tableware, glassware, and folded napkins. Add centerpieces or decorative accents to enhance the visual appeal.

Bathroom Areas:
Clean and declutter bathroom spaces, ensuring that towels are neatly folded or hung. Add luxury items like soaps, candles, or fresh flowers to elevate the ambiance.

Post-Processing and Image Enhancement
Post-processing is a critical step in hotel photography to refine and enhance your images. Consider the following techniques:

Raw Processing:
Shoot in RAW format to retain maximum image information and flexibility in post-processing. Use software like Adobe Lightroom or Capture One to adjust exposure, white balance, and other parameters.

Image Retouching:
Remove any distractions or imperfections using clone stamp or healing brush tools. Pay attention to details like sensor dust, reflections, or unwanted objects.

Color Correction:
Ensure color accuracy by adjusting white balance and fine-tuning colors to match the hotel's branding and atmosphere.

Image Sharpening:
Apply selective sharpening techniques to enhance details and create crisp, professional-looking images.
HDR Processing: Merge bracketed exposures using HDR software for scenes with extreme contrast to achieve a well-balanced and natural-looking image.

Collaborating with Professionals
While it is possible to handle hotel photography in-house, collaborating with professional photographers can yield exceptional results. Professional photographers have the experience, skills, and specialized equipment to capture the essence of your hotel and create visually stunning images that align with your brand identity.

Conclusion:

Hotel photography is a vital component of any successful marketing strategy in the hospitality industry. By understanding the importance of hotel photography and implementing the techniques discussed in this guide, you can capture captivating images that effectively showcase your hotel's unique features and entice potential guests. Remember, investing in high-quality visuals is an investment in your hotel's success and can make a significant impact on attracting bookings and establishing your property as a desirable destination.

A financial market refers to a marketplace where various kinds of financial securities such as stocks, bonds, commodities, etc. are traded. The term ‘market’ can also refer to exchanges that are legal organizations that facilitate the trade of financial securities between buyers and sellers. In any case, these markets are categorized based of the type of financial securities that are traded through them. One such financial market is the Derivatives Market.

Derivatives market thus refers to the financial marketplace where derivative instruments such as futures, forwards and options contracts are traded between counterparties.

It was during the 1980s and 1990s that the financial markets saw a major growth in the trade of derivatives. A derivative is a financial instrument whose value is derived from the value of an underlying asset such as stocks, bonds, currencies, commodities, interest rates and/or different market indices. These underlying assets have fluctuating prices and returns, and derivatives provides a means to investors to reduce the risk exposure and leverage profits on these assets. Thus, derivatives are an essential class of financial instruments and central to the modern financial markets providing not just economic benefits but also resilience against risks. The most common derivatives include futures, forwards, options and swap contracts.

As per the European Securities and Markets Authority (ESMA), derivatives market has grown impressively (around 24 percent per year in the last decade) into a truly global market with over €680 trillion of notional amount outstanding. The interest rate derivatives (IRDs) accounted for 82% of the total notional amount outstanding followed by currency derivatives at 11%.

Main types of derivative contracts
Derivatives derive their value from an underlying asset, or simply an ‘underlying’. There is a wide range of financial instruments that can be an underlying for a derivative such as equities or equity index, fixed-income instruments, foreign currencies, commodities, and even other securities. And thus, depending on the underlying, derivative contracts can derive their values from corresponding equity prices, interest rates, foreign exchange rates, prices of commodities and probable credit events. The most common types of derivative contracts are elucidated below:

Forwards and Futures
Forward and futures contracts share a similar feature: they are an agreement between two parties to buy or sell a specified quantity of an underlying asset at a specified price (or ‘exercise price’) on a predetermined date in the future (or ‘expiration date’). While forwards are customized contracts i.e., they can be tailor-made according to the asset being traded, expiry date and price, and traded Over-the-Counter (OTC), futures are standardized contracts traded on centralized exchanges. The party that buys the underlying is said to be taking a long position while the party that sells the asset takes a short position and both parties are obligated to fulfil their part of the contract.

Options
An option contract is a financial derivative that gives its holder the right (but not the obligation) to trade an underlying asset at a price set in advance irrespective of the market price at maturity. When an option is bought, its holder pays a fixed amount to the option writer as cost for this flexibility of trading that the option provides, known as the premium. Options can be of the types: call (right to buy) or put (right to sell).

Swaps
Swaps are agreements between two counterparties to exchange a series of cash payments for a stated period of time. The periodic payments charged can be based on fixed or floating interest rates, depending on contract terms decided by the counterparties. The calculation of these payments is based on an agreed-upon amount, called the notional principal amount (or just notional).

Exchange-traded vs Over-the-counter Derivatives Market
Exchange-traded derivatives markets
Exchange-traded derivatives markets are standardized markets for derivatives trading and follows rules set by the exchange. For instance, the exchange sets the expiry date of the derivatives, the lot-size, underlying securities on which derivatives can be created, settlement process etc. The exchange also performs the clearing and settlement of trades and provide credit guarantee by acting as a counterparty for every trade of derivatives. Thus, exchanges provide a transparent and systematic course of action for any derivatives trade.

Over-the-counter markets
Over-the-counter (also known as “OTC”) derivatives markets on the other hand, provide a lesser degree of regulations. They were almost entirely unregulated before the financial crisis Produits dérivés comics of 2007-2008 (also a time when derivatives markets were criticized, and the blame was placed on Credit Default Swaps). OTCs are customized markets and run by dealers who hedge risks by indulging in derivatives trading.

Types of market participants
The participants in the derivative markets can be categorized into different groups namely,

Hedgers
Hedging is a risk-neutralizing strategy when an investor seeks to protect a current or anticipated position in the market by limiting their risk exposure. They can do so by taking up an offset or counter position through derivative contracts. Parties such as individuals or companies who perform hedging are called Hedgers. The hedger thus aims to eliminate volatility against fluctuating prices of underlying securities and protect herself/himself from any downsides.

Speculators
Speculation is a very common technique used by traders and investors in the derivatives market. It is based on when traders have a strong viewpoint regarding the market behavior of any underlying security and though it is risky, if the viewpoint is correct, the speculation may reward with attractive payoffs. Thus, speculators use derivative contracts with a view to make profit from the subsequent price movements. They do not have any risk to hedge, in fact, they operate at a relatively high-risk level in anticipation of profits and provide liquidity in the market.

Arbitrageurs
Arbitrage is a strategy in which the participant (or arbitrageur) aims to make profits from the price differences which arise in the investments made in the financial markets as a result of mispricing. Arbitrageurs aim to earn low risk profits by taking two different positions in the same or different contracts (across different time periods) or on different exchanges to in-cash on price discrepancies or market inefficiencies.

Margin Traders
Margin is essentially the collateral amount deposited by an investor investing in a financial instrument to the counterparty in order to cover for the credit risk associated with the investment. In margin trading, the trader or investor is not required to pay the total value of your position upfront. Instead, they only need pay the margin amount which may vary and are usually fixed by the stock exchanges considering factors like volatility. Thus, margin traders buy and sell securities over a single session and square off their position on the same day, making a quick payoff if their speculations are right.

Criticism of derivatives
While derivatives provide numerous benefits and have significantly impacted modern finance and markets, they pose many risks too. In a 2002 letter to Berkshire Hathaway shareholders, Warren Buffet even described derivatives as “financial weapons of mass destruction”.

Derivatives are more highly leveraged due to relatively relaxed regulations surrounding them, and where one may need to put up half the money or more with buying other securities, derivatives traders can get by with just putting up a few percentage points of the total value of a derivatives contract as a margin. If the price of the underlying asset keeps falling, covering the margin account can lead to enormous losses. Derivatives are thus often criticized as they may allow investors to obtain unsustainable positions that elevates systematic risk so much that it can be equated to legalized gambling. Derivatives are also exposed to counterparty credit risk wherein there is scope of default on the contract by any of the parties involved in the contract. The risk becomes even greater while trading on OTC markets which are less regulated.

Derivatives have been associated with a number of high-profile credit events over the past two decades. For instance, in the early 1990s, Procter and Gamble Corporation lost more than $100 million in transactions in equity swaps. In 1995, Barings collapsed when one of its traders lost $1.4 billion (more than twice its then capital) in trading equity index derivatives.

The amounts involved with derivatives-related corporate financial distresses in the 2000s increased even more. Two such events were the bankruptcy of Enron Corporation in 2001 and the near collapse of AIG in 2008. The point of commonality among these events was the role of OTC derivative trades. Being an AAA-rated company, AIG was being exempted from posting collateral on most of its derivatives trading in 2008. In addition, AIG was unique among CDS market participants and acted almost exclusively as credit protection seller. When the global financial crisis reached its peak in late 2008, AIG’s CDS portfolios recorded substantial mark-to-market losses. Consequently, the company was asked to post $40 billion worth of collateral and the US government had to introduce a $150 billion financial package to prevent AIG, once the world’s largest insurer by market value, from filing for bankruptcy.

Conclusion
Derivatives were essentially created in response to some fundamental changes in the global financial system. If correctly handled, they help improve the resilience of the system, hedge market risks and bring economic benefits to the users. Thus, they are expected to grow further with financial globalization. However, past credit events have exposed many weaknesses in the organization of their trading. The aim is to minimize the risks associated with such trades while enjoying the benefits they bring to the financial system. An important challenge is to design new rules and regulations to mitigate the risks and to promote transparency by improving the quality and quantity of statistics on derivatives markets.